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

Trendingnow

1

Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back

2

When SpaceX starts trading, some 'shareholders' will discover they own nothing at all

3

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer

1

Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back

2

When SpaceX starts trading, some 'shareholders' will discover they own nothing at all

3

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
Tesla

Tesla made workers sleep inside its Shanghai gigafactory to keep production going. Now it’s cutting their shifts

Nicholas Gordon
By
Nicholas Gordon
Nicholas Gordon
Asia Editor
Down Arrow Button Icon
Nicholas Gordon
By
Nicholas Gordon
Nicholas Gordon
Asia Editor
Down Arrow Button Icon
May 11, 2022, 6:34 AM ET

Last month, as Shanghai’s citywide COVID lockdown showed no signs of abating, local authorities gave Tesla the green light to restart operations at its Shanghai gigafactory under a “closed-loop” system, where workers live on-site and avoid contact with those outside to avoid any COVID-related disruptions.

Staff were bused to the cavernous factory and reportedly provided sleeping bags and mattresses to camp down in. Tesla has no formal dorm facilities on-site, and in April the company was reportedly constructing shower areas for its closed-loop staff.

Tesla had hoped the system would enable it to produce 2,600 cars a day by mid-May, while most of Shanghai remained in lockdown. But on Tuesday, the electric-vehicle maker only churned out 200 units from its Shanghai factory bubble, reports Reuters.

The issue stunting Tesla’s productivity is that while the EV maker was able to deploy resources to get its staff into a closed-loop system, not every other factory in Shanghai could do the same. At least one of Tesla’s suppliers has shuttered its production facilities owing to the COVID outbreak, creating a parts shortage for Tesla that has left its closed-loop staff with little work to do.

Tesla has had to cut some shifts short after running out of parts, reports Bloomberg. Tesla did not immediately respond to Fortune’s request for comment.

Despite its factory being open for almost a month, Tesla was only able to make its first overseas shipment of cars on Wednesday, according to the Shanghai Observer, a government-backed news outlet. The manufacturer’s China sales plummeted in April, too, falling 98% from the previous month, according to data from the China Passenger Car Association (CPCA). By the end of April, Tesla had produced 10,757 cars, yet only sold 1,512 of them, according to the CPCA.

Tesla’s stuttering output is the latest example of how China’s COVID outbreak is snarling supply chains, even as Shanghai officials try to restart critical sectors of the economy while tightening restrictions on the rest of the city.

Shanghai is now in its seventh week of lockdown, with the city government on Monday imposing a two-day “static management order” that confined almost all residents to their homes and sharply curtailed the movement of medical workers and food delivery workers. The dramatic tightening of COVID restrictions comes as the central government piles pressure on local authorities to stamp out the virus completely. The city reported 1,487 COVID cases over the past 24 hours, the lowest total recorded in more than 18 days.

Even though some factories are able to open, Shanghai’s increasingly restrictive lockdown is preventing manufacturers from shipping goods out of the city. Shanghai’s port, despite running on a closed-loop system similar to Tesla’s, has struggled to load and unload cargo from container ships, hundreds of which are waiting off the coast. China’s logistics system has stalled as truckers are caught up in COVID restrictions and quarantines. 

According to Fitch Ratings, freight traffic through Shanghai has plunged 80% from its level in late March. Shanghai is China’s largest port, and the congestion there contributed to a 5.3% drop in the country’s exports from March to April, Fitch noted.

“Much of this disruption, however, is yet to be reflected in hard global macro data,” Fitch Ratings said, warning that the fallout from Shanghai’s lockdown has yet to pass.

Sign up for the Fortune Features email list so you don’t miss our biggest features, exclusive interviews, and investigations.

About the Author
Nicholas Gordon
By Nicholas GordonAsia Editor
LinkedIn iconTwitter icon

Nicholas Gordon is an Asia editor based in Hong Kong, where he helps to drive Fortune’s coverage of Asian business and economics news.

See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • 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
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

SpaceX just made IPO history. Gwynne Shotwell made it possible
NewslettersMPW Daily
SpaceX just made IPO history. Gwynne Shotwell made it possible
By Emma HinchliffeJune 12, 2026
2 hours ago
mortgage
Real Estatemortgages
Mortgage rate rises to 6.52% from 6.48%, near yearlong high
By Alex Veiga and The Associated PressJune 12, 2026
2 hours ago
elon
Startups & VentureWealth
Elon’s wealth: 1 trillion dollar bills would stretch 97 million miles, to the moon and back over 200x
By Wyatte Grantham-Philips and The Associated PressJune 12, 2026
2 hours ago
victor
North AmericaSports
Victor Wembanyama nearly got egged by a rabid Knicks fan. Nobody filed a complaint with the NYPD
By The Associated PressJune 12, 2026
2 hours ago
With SpaceX IPO, Elon Musk is the world’s first trillionaire — but he mostly lives in a tiny home in south Texas. ‘There is no food in the fridge’
Startups & VentureElon Musk
With SpaceX IPO, Elon Musk is the world’s first trillionaire — but he mostly lives in a tiny home in south Texas. ‘There is no food in the fridge’
By Jason MaJune 12, 2026
2 hours ago
dan
PoliticsElections
Dan Sullivan could be kicked out of Alaska Senate primary — but not that Dan Sullivan
By Becky Bohrer and The Associated PressJune 12, 2026
2 hours ago

Most Popular

Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back
Environment
Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back
By Catherina GioinoJune 9, 2026
3 days ago
When SpaceX starts trading, some 'shareholders' will discover they own nothing at all
Investing
When SpaceX starts trading, some 'shareholders' will discover they own nothing at all
By Jim EdwardsJune 12, 2026
8 hours ago
Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
Energy
Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
By Sasha RogelbergJune 10, 2026
2 days ago
Current price of oil as of June 11, 2026
Personal Finance
Current price of oil as of June 11, 2026
By Joseph HostetlerJune 11, 2026
1 day ago
American taxpayers have spent $33 billion on sports stadiums. They got fewer seats—and higher prices
Success
American taxpayers have spent $33 billion on sports stadiums. They got fewer seats—and higher prices
By Catherina GioinoJune 11, 2026
24 hours ago
Meet the SpaceX employees who are set to become multimillionaires thanks to its IPO: from execs to even welders
Success
Meet the SpaceX employees who are set to become multimillionaires thanks to its IPO: from execs to even welders
By Preston ForeJune 11, 2026
1 day ago

© 2026 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.