Skip to content

Tesla, VW Keep Shanghai Workers Isolated Even as Lockdown Eases

  • Carmakers will operate ‘closed loops’ at plants until June 10
  • Shanghai is removing lockdown curbs as Covid outbreak wanes
The Tesla Inc. Gigafactory in Shanghai, China.

The Tesla Inc. Gigafactory in Shanghai, China.

Photographer: Qilai Shen/Bloomberg

Tesla Inc. and Volkswagen AG plan to keep workers at their Shanghai factories isolated in so-called closed loop management systems until June 10, according to people familiar with the matter, even as authorities allow most residents to move freely around the city amid falling Covid-19 cases.  

Elon Musk’s electric-car maker told the more than 10,000 workers living in Tesla’s “factory bubble” to be prepared to stay in the system until June 10, according to the people, who asked not to be named because the plans are private. While movement restrictions are being lifted for residents in low-risk parts of Shanghai, the company wants to have a 10-day buffer to ensure production stability, they said.