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Despite Zero Covid policy, Tesla continues to cling to China

China is quite tense right now when near-opening measures are not mentioned. Zero Covid policy tightened in Shanghai. Tesla is one of the foreign businesses trying to “cling up” every day.

Thousands of Tesla workers at the Shanghai factory are sleeping on the floor. They work 12-hour shifts, six days a week to restart the line after seven days of downtime.

Tesla wants to move these workers into dormitories and keep them in a “closed bubble” until June 13. In this system, Tesla employees will be sent to work and tested for Covid-19 regularly.

They are also trying to arrange a second shift at the Shanghai factory as soon as next week. This move is intended to help the electric vehicle production line operate 24/24 in the context of the supply of auto parts and other parts has eased. With a 24-hour shift, the factory can produce 2,100 vehicles per day.

Bloomberg’s source said that Tesla executives are in talks with the Shanghai government about housing for workers. They can use temporary dormitories or vacant isolation centers.

Tesla used to want most of its workers to be picked up by bus from their homes to the factory every day. However, Shanghai officials disagreed and said that if they had left the apartment, Tesla workers would not be allowed to return.

Shanghai is expected to gradually lift the social distancing measures in place that have kept millions of people at home for the past several weeks. The epidemic here is gradually being controlled. However, there are still many restrictions such as people must have a special card to leave the apartment. Many businesses remain closed.

China’s resolute adherence to its Zero Covid strategy has slowed everything from spending to production in the world’s second-largest economy. In April, China’s industrial output and spending fell to their worst levels since the pandemic broke out in early 2020. In Shanghai last month, automakers failed to sell any cars.

Source: Bloomberg