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Tesla Wants Staff to Stay in China Factory Until Mid-June

  • Closed-loop system to stay despite Shanghai lockdown easing
  • Carmaker looking to start a second shift as soon as next week
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WATCH: “It’s a new reality for Tesla in China and that’s why we’re cutting numbers and price target accordingly,” Wedbush Securities Managing Director Dan Ives says.Source: Bloomberg
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Tesla Inc. plans to keep employees at its Shanghai factory working in a so-called closed loop system -- where staff are ferried to and from work and tested for Covid-19 regularly -- until mid-June, people familiar with the matter said, even as Chinese authorities move to ease wider lockdown restrictions in the city.

Thousands of the electric car maker’s workers have been sleeping on the floor of Tesla’s factory south of Shanghai doing 12-hour shifts, six days a week, to reboot production after a weeks-long pause because of the lockdown. Tesla wants to move those workers into a dormitory and keep them in a form of closed loop until June 13 at this stage, the people said, declining to be identified because the plans are private.