Transportation

Tesla workers in Shanghai will reportedly eat and sleep on the factory floor as it enters 'closed-loop system' to avoid further shutdowns

An aerial view of Tesla Shanghai Gigafactory on March 29, 2021 in Shanghai, China.
An aerial view of Tesla Shanghai Gigafactory on March 29, 2021, in Shanghai, China. Xiaolu Chu/Getty Images
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Tesla workers at the automaker's facility in Shanghai will be required to sleep on the factory floor as Tesla restarts production after a three-week shutdown, Bloomberg reported on Monday.

The publication cited people familiar with the matter who said the location would be operating as a "closed-loop system" in order to avoid further shutdowns amid China's zero-tolerance policy for COVID-19 infections.

The electric-car maker sent its workers a memo detailing how the system will work, which Bloomberg obtained, that said Tesla will provide workers with a sleeping bag and mattress and set aside a portion of the factory floor to be used as sleeping accommodations.

Tesla said in the memo that there will also be spaces for showering, food, and entertainment, but the company is still in the process of setting it up, Bloomberg reported. Tesla also laid out plans for temperature checks and COVID-19 testing, per the publication.

Bloomberg reported that Tesla plans to give workers an allowance for food of about $63 per day, though the amount could change depending on a worker's status at the company, a source told the publication. The incoming workers restarted work on Monday and are expected to stay in the closed-loop system until about May 1, per Bloomberg.

Workers will also be expected to work 12 hours a day with one day off every six days, Bloomberg reported. Previously, the employees would work eight-hour shifts with four days on and two days off, the publication said.

A Tesla spokesperson did not respond to a request for comment from Insider.

Tesla is not the only company to implement a closed-loop system. Earlier this month, The Wall Street Journal reported that nearly 5,000 workers at China's biggest state-owned automaker, SAIC Motor, were living at the site in dormitories amid the shutdown.

While Tesla's Shanghai factory does not have living spaces, many Chinese manufacturing companies have dormitories, cafeterias, and other amenities for workers. In 2013, Insider reported that Chinese workers who assembled Apple's iPhone worked 11-hour shifts and lived in on-site dorms at the Jabil Factory.

Tesla's Shanghai gigafactory opened in 2018, but has become an increasingly large part of the carmaker's operations. Before Shanghai went into lockdown on March 28, the factory produced over 2,000 cars a day and contributed to about half of the vehicles Tesla delivered worldwide last year.

Read the full story on Bloomberg's website.

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Grace Kay
Grace Kay was a Correspondent on Business Insider’s enterprise desk, where she covered the inner workings of Tesla, Elon Musk’s AI startup, xAI, and the broader robotics and electric vehicle industries.Her stories have been cited by multiple publications, including Reuters, Bloomberg, and CNBC. Before joining Business Insider, she worked at Bloomberg and Forbes.Tesla: Inside 'Project Rodeo,' the Tesla effort pushing the limits of self-driving technologyInternal Tesla salary database shows Elon Musk's strategy: Lower salaries, bigger stock grantsTesla tells staff it plans to roll out its Robotaxi service in San Francisco this weekendTesla has been working on modified Model Ys for its Robotaxi programTesla prioritizes Musk's and other 'VIP' drivers' data to train self-driving softwareAshok Elluswamy is the most powerful Tesla executive you've never heard ofxAI:Internal documents reveal how Elon Musk's xAI trains Grok to be the anti-woke chatbotXAI's Macrohard project stalls as Tesla ramps up a similar AI agent effortElon Musk's xAI plans to supply computing power to coding startup CursorWar rooms, group chats, and video games: Inside Elon Musk's AI startupBehind Grok's 'sexy' settings, workers review explicit and disturbing contentElon Musk's xAI lays off hundreds of workers tasked with training GrokEVs and robots:Fisker employees are fixing some customers' cars with parts from the company's vehicle 'graveyard,' sources sayFisker Ocean reservation cancellations top 40,000 as the EV company tries to fight off bankruptcy, leaked data showsInside the downfall of Henrik Fisker's second automotive startup, which just filed for bankruptcyInside the glass-walled Tesla lab where workers train the Optimus robot to act like a humanInside OpenAI's renewed push into robotics