A two-day shutdown at Giga Shanghai would mean a loss of production of about 4,000 units.

Tesla's Shanghai plant is suspending production for two days on Wednesday and Thursday, Reuters reported today, citing a notice sent internally and to suppliers.

The notice did not specify the reason for the Giga Shanghai shutdown, the Reuters report said, adding that it comes as China tightens Covid restrictions.

The report cited two people briefed on the notice as saying it was their understanding that it applied to the general assembly lines of Tesla (NASDAQ: TSLA).

Tesla's Shanghai plant produces cars for the Chinese market and also exports to markets such as Germany and Japan.

The company sold 56,515 China-made vehicles in February, of which 33,315 were exported and 23,200 were delivered in China, according to data released earlier this month by the China Passenger Car Association (CPCA).

Tesla has a zero-inventory mechanism, which means its sales volume is basically equal to its production volume. If the Reuters report is true, a two-day shutdown of Giga Shanghai would mean a loss of about 4,000 units of production.

Despite racing against time, Tesla's production is still meeting consumer demand.

Earlier this month, the company extended expected delivery dates for several models in China and raised prices twice in a row.