Tesla Restarts Giga Shanghai Production, Employees to Sleep in Factory

After Tesla’s halt on production at its Shanghai factory lasted for over three weeks, the automaker is officially producing electric vehicles (EVs) once again.

Tesla has resumed production at its Gigafactory Shanghai as of Tuesday, according to the Xinhua News Agency (via Reuters).

The production facility was shut down due to a major COVID-19 surge in China, which caused the government to revert to its strict COVID-zero lockdown policies.

Now, Tesla has received the green light from authorities in Shanghai to prepare to resume production on Monday, though the line remains under stress amidst the COVID-19 restrictions, according to a source close to the matter. The source said, “The resumption is stuttering.”

The automaker plans to ramp up its production at the Shanghai plant over the next three to four days in order to resume one-shift production, as detailed by a Tesla manager to Shanghai Television on Tuesday.

According to a second source, the reopening of the factory was delayed for logistical reasons, though Tesla did not respond to requests for comment.

Tesla’s output loss lands around 50,000 vehicles for the time production was halted.

Bloomberg reported Monday Tesla’s Gigafactory Shanghai would resume on a “closed-loop” system, where workers would essentially live and sleep in the factory, with a provided sleeping bag and mattress, meals and $63/day stipend. Workers would get tested for COVID for their first three days and have temperatures checked, along with strict handwashing protocols.

The publication said Tesla is seeing about 40,000 cars delayed due to the shutdown.

The production halt began on March 28, originally only meant to happen for five days, and it was also the largest period of stopped production since the factory opened in 2019.