TeslaThe Shanghai plant resumed operations after a week-long paralysis due to Covid restrictions. The factory will produce about 2,100 vehicles a day when fully operational, but had been closed since March 28 due to a city-wide blockade following a Covid surplus. The blockade affected all investors in the economy and paralyzed the production of various products, including electronics and cars.
The Shanghai blockade is expected to end in early May, but this could change depending on the Covid situation in the region. It is believed that Tesla has already lost more than 40,000 units since the plant was closed and would have lost up to 84,000 vehicles had it not been repaired until the end of the blockade.
The restoration of the factory is good news for Tesla, but the company’s employees will have to overcome several difficulties to realize the so-called ‘closed circuit’ system that all operational installations must implement as security measures during the lockout phase. As part of the plan, the operators must stay in the factory and sleep in the forest, at least until the end of the block. I agree with BloombergTesla sent a memorandum to employees, saying it would provide sleeping bags and stacks. The company also creates separate areas within the factory for bathing, entertainment and food.
Operators will also have to pass daily nuclear acid tests for the first three days, as well as temperature checks twice a day during their time at the plant. At the same time, they should also wash their hands at least four times a day. Tesla will provide employees with three references each day and provide them with a daily subsidy of up to 400 Yuan (US$63), depending on their position in the company. Workers will also have to work longer hours to normalize production, up to 12 hours a day, six days a week.
The Shanghai blockade is part of China’s “zero-covid” policy, which has been credited with helping the country’s economy in 2020, as other major economies turn their GDPs against each other as they battle wave after coronavirus. Meanwhile, the continuation of the policy is accused of harming the country’s economy and the series of difficulties facing the inhabitants of the affected regions. The government showed no remorse, but reports show authorities are working to improve the implementation of the policy, which has been disastrous for better mortgages. Even for a business that is very lucrative Teslatheir workers are the ones who will support the weight of the restrictions, at least until the end of the blockade.