Tesla Gigafactory Shanghai will be suspending its operations for at least one day this week as the city intensifies its efforts to combat a new wave of Covid-19 infections. The information was shared by people familiar with the matter.
The individuals, which opted to remain anonymous because they reportedly were not authorized to speak publicly, told Bloomberg that production at Giga Shanghai would be suspended on Monday. Tesla has reportedly not informed its employees if the suspension will only last one day or if it would be extended.
Tesla has not issued a response about the reports of Gigafactory Shanghai’s shutdown this week.
The shutdown this week serves as the second halt in Giga Shanghai’s operations this month. The facility paused its vehicle production operations earlier this month as China tightened its Covid restrictions one more. The facility was closed for two days, which was spent testing workers in the massive electric vehicle production facility.
This past Sunday, the Shanghai government announced that it had plans to lock down the city in two phases. The first phase would involve a lockdown of 11 million people, and it will last from Monday to Thursday. A second phase, which is expected to affect 14 million residents, will start Friday and also last four days. Gigafactory Shanghai is located in an area of the city that will be locked down from Monday to Thursday.
Non-essential workers will be working from home, and public transit services will be paused. Unapproved vehicles would also not be allowed to travel on public roads. “The public is asked to support, understand and cooperate with the city’s epidemic prevention and control work, and participate in nucleic acid testing in an orderly manner,” the government noted.
China is currently dealing with its worst Covid outbreak in two years as the country deals with the effects of the Omicron variant. Shanghai has been battling the virus for the better part of a month, and this Saturday, it reported the highest number of infections since the initial Covid outbreak in the country receded.
Pauses in Gigafactory Shanghai’s operations will likely affect Tesla’s vehicle output this first quarter. Giga Shanghai currently plays a major role in Tesla’s operations, serving as a vehicle export hub and producing roughly half of the company’s output last year. So far, Tesla only operates three vehicle production facilities across the globe, in the form of the Fremont Factory in California, Gigafactory Shanghai in China, and Giga Berlin-Brandenburg in Germany.
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News
Tesla takes first step in sunsetting Model S and X with drastic move
Tesla won’t be taking custom orders of the Model S or Model X in Europe any longer.
Tesla has seemingly taken the first step in sunsetting two of its older vehicles, the Model S and Model X, by ending international orders.
The flagship sedan and SUV from Tesla are the two oldest cars in the company’s lineup. They account for a very small portion of overall sales, and several years ago, CEO Elon Musk admitted that Tesla only continues to build and sell them due to “sentimental reasons.”
Earlier this year, there were calls for Tesla to end the production of the two cars, but Lars Moravy said that the Model S and Model X were due to get some love later in 2025. That happened, but the changes were extremely minor.
Tesla launches new Model S and Model X, and the changes are slim
Some took this as an indication that Tesla has kind of moved on from the Model S and Model X. A handful of people seemed to think Tesla would overhaul the vehicles substantially, but the changes were extremely minor and included only a few real adjustments.
In Europe, customers are unable to even put a new order in on a Model S or Model X.
We noticed earlier today that Tesla pressing the ‘Order’ button on either of the flagship vehicles takes you to local inventory, and not the Design Studio where you’d configure your custom build:
🚨 Tesla has removed the Model S and Model X Design Configurators from European customers
It will now bring up available inventory for those two vehicles instead of allowing you to build your own config pic.twitter.com/sMnGAr2kuu
— TESLARATI (@Teslarati) July 30, 2025
Tesla simply does not make enough Model S or Model X units to justify the expensive logistics process of shipping custom orders overseas. It almost seems as if they’re that they will essentially build a bunch of random configurations, send them overseas every few months, and let them sell before replenishing inventory.
Inversely, it could also mean Tesla is truly gearing up to sunset the vehicle altogether. It seems unlikely that the company will fade them out altogether in the next couple of years, but it could absolutely think about ending international orders because volume is so low.
Energy
Tesla inks multi-billion-dollar deal with LG Energy Solution to avoid tariff pressure
Tesla has reportedly secured a sizable partnership with LGES for LFP cells, and there’s an extra positive out of it.
Tesla has reportedly inked a multi-billion-dollar deal with LG Energy Solution in an effort to avoid tariff pressure and domesticate more of its supply chain.
Reuters is reporting that Tesla and LGES, a South Korean battery supplier of the automaker, signed a $4.3 billion deal for energy storage system batteries. The cells are going to be manufactured by LGES at its U.S. factory located in Michigan, the report indicates. The batteries will be the lithium iron phosphate, or LFP, chemistry.
Tesla delivers 384,000 vehicles in Q2 2025, deploys 9.6 GWh in energy storage
It is a move Tesla is making to avoid buying cells and parts from overseas as the Trump White House continues to use tariffs to prioritize domestic manufacturing.
LGES announced earlier today that it had signed a $4.3 billion contract to supply LFP cells over three years to a company, but it did not identify the customer, nor did the company state whether the batteries would be used in automotive or energy storage applications.
The deal is advantageous for both companies. Tesla is going to alleviate its reliance on battery cells that are built out of the country, so it’s going to be able to take some financial pressure off itself.
For LGES, the company has reported that it has experienced slowed demand for its cells in terms of automotive applications. It planned to offset this demand lag with more projects involving the cells in energy storage projects. This has been helped by the need for these systems at data centers used for AI.
During the Q1 Earnings Call, Tesla CFO Vaibhav Taneja confirmed that the company’s energy division had been impacted by the need to source cells from China-based suppliers. He went on to say that the company would work on “securing additional supply chain from non-China-based suppliers.”
It seems as if Tesla has managed to secure some of this needed domestic supply chain.
Lifestyle
Tesla brings perhaps the coolest interior feature to cars in latest update
Tesla adds on to the “fun” aspect of its vehicles.
Tesla has brought perhaps the coolest interior feature to its cars in a new update that is rolling out to vehicles now.
The feature will require a newer vehicle that has interior ambient lighting, which is present on the new Model S, Model X, Model 3 “Highland,” and Model Y “Juniper.” The Cybertruck also has ambient lighting strips throughout.
Tesla Model Y’s ambient lighting design changes revealed in leaked video
With the Version 2025.26+ Software Update, Tesla is rolling out a new “Sync Accent Lights w/ Music” feature, which is available on the Tesla Toybox:
Turn your Tesla into a rave cave with the new Light Sync feature 🎶
Rolling out now in software update 2025.26+ pic.twitter.com/IIsQxZ9jDP
— Tesla (@Tesla) July 29, 2025
To enable the feature, you’ll access the Toybox, choose “Light Sync,” and then choose “Sync Accent Lights w/ Music.”
Although it does not improve the performance of the vehicle, it is yet another example of Tesla making one of the coolest cars out there. This is truly a cool add-on that can be used to impress your friends and family.
Tesla takes first step in sunsetting Model S and X with drastic move
Tesla inks multi-billion-dollar deal with LG Energy Solution to avoid tariff pressure
Tesla brings perhaps the coolest interior feature to cars in latest update
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