• Home
  • News
  • Fortune 500
  • Tech
  • Finance
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Tesla’s Shanghai workers will sleep in the factory to restart production during strict COVID-19 lockdowns

By
Colin Lodewick
Colin Lodewick
Down Arrow Button Icon
By
Colin Lodewick
Colin Lodewick
Down Arrow Button Icon
April 18, 2022, 5:33 PM ET

Tesla workers are set to sleep in the electric-car manufacturer’s Shanghai factory as operations resume after a three-week shutdown, Bloomberg reported Monday. 

Workers will live on-site until May 1, pending changes to the city’s strict “COVID zero” policy, as the country encounters its worst wave of the virus since the pandemic’s early days. 

Last week, President Xi Jinping reaffirmed China’s zero-COVID approach to the pandemic as the more transmissible Omicron variant continues to spread in the country, despite criticism from businesses and citizens that the restrictions are too harsh. The lockdown is so extreme that it has been difficult to buy food, and haunting social media videos have circulated of Shanghai residents screaming out of their windows in protest. 

The recent lockdowns have delayed Tesla production by approximately 40,000 cars, Bloomberg reported. 

The company will now provide each worker with a sleeping bag and mattress, as the facility does not have dorm accommodations. Specific areas will be allocated for sleeping, showering, entertainment, and eating.

Workers will be subject to COVID testing for their first three days in the “closed-loop” system of isolation on the factory premises, have their temperatures checked twice a day, and will be required to wash their hands four times a day. Tesla will provide three meals a day along with an allowance that will vary based on position and level within the company.

Apart from accommodating the approximately 400 employees already on-site, Tesla also issued special certificates and set up shuttle bus services for staff living in residential compounds outside the facility to join them.

Tesla did not immediately respond to Fortune’s request for comment.

The electric-car company is not the only one to ask workers to move their lives on-site in order to continue production in China. General Motors has also initiated a “closed-loop” system for its operations in Shanghai. So have Shanghai Port, the world’s largest container port, and Quanta Computer, which manufactures laptops for Apple.

China’s production slowdown as a result of its COVID restrictions could make inflation in the U.S. worse as supply-chain issues lead to unmet consumer demand for a variety of commodities, from cars to food. The COVID pandemic, and its effect on supply chains in general, has created major semiconductor and microchip shortages, which have affected all car manufacturers. As a result, used car prices have increased dramatically over the past year.

Never miss a story: Follow your favorite topics and authors to get a personalized email with the journalism that matters most to you.

About the Author
By Colin Lodewick
See full bioRight Arrow Button Icon

Latest in

The outside of a Dollar General store, at night
Retaildollar stores
Rich people are flooding dollar stores as Americans navigate a crushing affordability crisis
By Dave SmithDecember 4, 2025
9 minutes ago
Personal Financechecking accounts
Best checking accounts for December 2025
By Glen Luke FlanaganDecember 4, 2025
11 minutes ago
Zohran Mamdani, in front of a brick building, smiles as he holds a press conference.
Real EstateHousing
‘There is no Mamdani effect’: Manhattan luxury home sales surge after mayoral election, embarrassing predictions of doom and escape to Florida
By Sasha RogelbergDecember 4, 2025
13 minutes ago
Man smiles in front of camera
CryptoBlockchain
Battle for sports betting market heats up as Polymarket announces return to the U.S.
By Carlos GarciaDecember 4, 2025
21 minutes ago
Hassett, Bessent
EconomyTariffs and trade
Tariffs and the $38 trillion national debt: Kevin Hassett sees ‘big reductions’ in deficit while Scott Bessent sees a ‘shrinking ice cube’
By Nick LichtenbergDecember 4, 2025
2 hours ago
InnovationVenture Capital
This Khosla Ventures-backed startup is using AI to personalize cancer care
By Allie GarfinkleDecember 4, 2025
2 hours ago

Most Popular

placeholder alt text
Economy
Two months into the new fiscal year and the U.S. government is already spending more than $10 billion a week servicing national debt
By Eleanor PringleDecember 4, 2025
7 hours ago
placeholder alt text
North America
Jeff Bezos and Lauren Sánchez Bezos commit $102.5 million to organizations combating homelessness across the U.S.: ‘This is just the beginning’
By Sydney LakeDecember 2, 2025
2 days ago
placeholder alt text
Economy
Ford workers told their CEO 'none of the young people want to work here.' So Jim Farley took a page out of the founder's playbook
By Sasha RogelbergNovember 28, 2025
6 days ago
placeholder alt text
North America
Anonymous $50 million donation helps cover the next 50 years of tuition for medical lab science students at University of Washington
By The Associated PressDecember 2, 2025
2 days ago
placeholder alt text
Economy
Scott Bessent calls the Giving Pledge well-intentioned but ‘very amorphous,’ growing from ‘a panic among the billionaire class’
By Nick LichtenbergDecember 3, 2025
1 day ago
placeholder alt text
AI
IBM CEO warns there’s ‘no way’ hyperscalers like Google and Amazon will be able to turn a profit at the rate of their data center spending
By Marco Quiroz-GutierrezDecember 3, 2025
1 day ago
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.