Skip to content

Tesla and Sony’s Problems Show Shanghai’s Big Restart is Faltering

  • Companies are struggling to get factories up and running again
  • Supply-chain disruptions, staffing logistics impact operations
Video player cover image
WATCH: China’s financial hub Shanghai is resuming delivery services and work in some factories, even as many residents remain in #Covid19 lockdown.Source: Bloomberg

The official line coming out of Covid-hit Shanghai is that business is returning to usual despite the ongoing lockdown, yet hundreds of manufacturers in the city aren’t operating at anywhere near to full capacity, if they’re up and running again at all. 

While factories have been given special allowances to reopen under strict guidelines and systems, snarls in the supply chain -- from a shortage of delivery drivers to a lack of materials -- continue to disrupt local operators and global giants including Tesla Inc. and Sony Group Corp. And despite a decline in virus cases, the lockdown is intensifying as officials chase the elusive goal of wiping out Covid in the community.