Tesla and other EV makers hit hard by COVID lockdowns in China

When Tesla’s Shanghai plant and other auto plants were shut down for the past two months by emergency measures to control China’s largest COVID-19 outbreak, the burning question was how quickly they could restart to meet growing demand.

But with Shanghai’s lockdown entering its fourth week and similar measures imposed in dozens of smaller towns, the world’s biggest booming electric car market has gone bankrupt.

Other companies – from luxury goods makers to fast-food restaurants – also offered a first read on lost sales and shaken confidence in recent weeks, even as Beijing rolls out measures to help industries hit by the coronavirus crisis. COVID and drive demand.

Joey Wat, CEO of Yum China, which owns KFC and Taco Bell, said in a letter to investors that April sales were “significantly affected” by COVID checks.

In response, the company simplified its menu, streamlined its staff and encouraged bulk ordering for gated communities, she said.

The pressing question now is: how and when will Chinese consumers start buying everything from Teslas to tacos again?

Electric vehicle sales booming ahead of lockdown

In China’s once-hot electric vehicle market, the recent turmoil is a stark example of an economic punch, first to supply, then to demand, from Beijing’s strict implementation of COVID controls in the world’s second largest economy.

Shanghai reported 32 new deaths from COVID-19 on May 1, up from 38 the day before, the local government said Monday.

The city recorded 6,606 new asymptomatic local coronavirus cases and symptomatic cases stood at 727.

Before Shanghai was locked down in early April to contain an outbreak of COVID-19, sales of electric vehicles had skyrocketed.

Tesla’s sales in China jumped 56% in the first quarter, while sales of electric vehicles from its biggest rival in China, BYD, increased fivefold. Then came the lockdowns.

Shanghai’s showrooms, stores and malls have been closed and its 25 million people have been unable to shop online for far beyond food and daily necessities due to bottlenecks Delivery.

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