Tesla Left In A 'Very Tough' Spot Over China Lockdowns, Admits Elon Musk

Lockdowns in one of China’s largest cities has been a heavy burden for Tesla, which just made it through what CEO Elon Musk described as a “very tough” first quarter.

In an email sent to Tesla employees over the weekend, Elon Musk thanked his workforce for persevering through this difficult period and delivering "great, real products that people love", something he said was "profound."

"Whatever else is going on in this messed-up world, know that at least what you are doing is pure goodness and that I have infinitely more respect and admiration for you than the richest person [on Wall Street],” Musk wrote in his email, which was was first reported on by Elektrek.

Musk remarked that the first quarter was a "very tough" one to go through, specifically because of the COVID-related lockdowns in China that have cut into production at the Tesla Gigafactory near Shanghai. In response, Musk urged his employees to “rally hard” to recover.

The Chinese government has cracked down hard on outbreaks as they emerge with its'zero-COVID policy, including shutting down its largest cities for prolonged periods of time.

Under this strategy, authorities work towards a complete elimination of the virus through strict public health measures like lockdowns, mass testing and limiting the entry of foreigners into China.

Despite complaints that this policy may be worsening global supply chain issues and pushing up global inflation, China President Xi Jinping has maintained his support for the policy.

Shanghai has been something of a poster child for the strains of the lockdown on a global scale. Though the city of 26 million slowly began reopening at the end of May, its productivity capacity has not returned to full strength.

Since the city first started shuttering in March, millions of residents have been in lockdown, forcing many factories to pause operations in line with the orders of local authorities. This has prompted even large and iconic brands like Disneyland Shanghai to close down indefinitely.

Tesla’s Shanghai factory produces cars for the Chinese market as well as exports to Europe and throughout Asia. It produced half of the company's electric vehicles before the lockdowns.