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Tesla to provide stipend, meals, and mattresses to workers as Giga Shanghai adopts “closed-loop” system

Credit: Tesla Inc.

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Following a three-week shutdown that began at the end of March, Giga Shanghai is poised to resume vehicle production. To accomplish this, Tesla China is adopting a closed-loop system, which would involve the company temporarily housing its workers in the Giga Shanghai complex. 

Gigafactory Shanghai has been serving an increasingly large part of Tesla’s operations. Last year, the facility effectively produced about half of the vehicles that the company delivered worldwide. It is pertinent for Tesla to ensure that Giga Shanghai could return to operations as quickly as possible, as every day the facility is paused results in lost production. 

Fortunately, Tesla China appears to have a clear-cut plan to ensure that its workers are safe as it resumes operations at Giga Shanghai. As per individuals familiar with the matter and a memo retrieved and viewed by Bloomberg, Tesla China would be adopting a closed-loop system in Gigafactory Shanghai. This means that the company would be boarding its workers to ensure that the facility remains operational. 

According to the publication’s sources, each worker at Gigafactory Shanghai would be provided a sleeping bag, a mattress, and three meals a day. Workers would be sleeping on the factory floor in a designated area for now, though spaces for showering and entertainment are coming. Tesla would also be giving its workers a daily stipend of about 400 yuan (about $63), though the exact amount will be dependent on a person’s position in the company. 

Tesla has reportedly informed employees on Friday to prepare for a closed-loop system this week. To help employees bypass restrictions on residential compounds in Shanghai, Tesla China reportedly issued a special certificate for workers who were on call. The company also arranged buses to shuttle workers to the facility. It should be noted that only Tesla China staff who were residing in the lowest-risk residential compounds in Shanghai and those who have completed two shots of the Covid vaccine would be allowed to resume work. 

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The memo retrieved by Bloomberg noted that these workers would be joining about 400 employees who are already in the Giga Shanghai facility. The last batch of closed-loop workers at Gigafactory Shanghai is expected to work in the facility through May 1, though this is subject to changes depending on the city’s Covid restrictions. The workers who would be temporarily living in Giga Shanghai would reportedly be working 12 hours per day, six days straight, with one day off. 

Prior to the current shutdown, Giga Shanghai was operating 24/7 using three shifts of workers. Factory workers would typically work four days on and then take two days off, according to individuals familiar with the matter. While Gigafactory Shanghai would be resuming production, however, ramping the facility back to its previous output levels would likely take some time. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla starts hiring efforts for Texas Megafactory

Tesla’s Brookshire site is expected to produce 10,000 Megapacks annually, equal to 40 gigawatt hours of energy storage.

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Tesla's Megapack Factory in Lathrop, CA (Credit: Tesla)

Tesla has officially begun hiring for its new $200 million Megafactory in Brookshire, Texas, a manufacturing hub expected to employ 1,500 people by 2028. The facility, which will build Tesla’s grid-scale Megapack batteries, is part of the company’s growing energy storage footprint. 

Tesla’s hiring efforts for the Texas Megafactory are hinted at by the job openings currently active on the company’s Careers website.

Tesla’s Texas Megafactory

Tesla’s Brookshire site is expected to produce 10,000 Megapacks annually, equal to 40 gigawatt hours of energy storage, similar to the Lathrop Megafactory in California. Tesla’s Careers website currently lists over 30 job openings for the site, from engineers, welders, and project managers. Each of the openings is listed for Brookshire, Texas.

The company has leased two buildings in Empire West Business Park, with over $194 million in combined property and equipment investment. Tesla’s agreement with Waller County includes a 60% property tax abatement, contingent on meeting employment benchmarks: 375 jobs by 2026, 750 by 2027, and 1,500 by 2028, as noted in a report from the Houston Business Journal. Tesla is required to employ at least 1,500 workers in the facility through the rest of the 10-year abatement period. 

Tesla’s clean energy boom

City officials have stated that Tesla’s arrival marks a turning point for the Texas city, as it highlights a shift from logistics to advanced clean energy manufacturing. Ramiro Bautista from Brookshire’s economic development office, highlighted this in a comment to the Journal

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“(Tesla) has great-paying jobs. Not just that, but the advanced manufacturing (and) clean energy is coming to the area,” he said. “So it’s not just your normal logistics manufacturing. This is advanced manufacturing coming to this area, and this brings a different type of job and investment into the local economy.”

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Tesla Giga Shanghai just built its 5 millionth battery pack

The achievement highlights Giga Shanghai’s role as the automaker’s highest volume manufacturing complex.

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Credit: Tesla Asia

Tesla’s Shanghai Gigafactory has reached a major production milestone, with its five millionth battery pack rolling off the line this week. 

The achievement highlights Giga Shanghai’s role as the automaker’s highest volume manufacturing complex and primary vehicle export hub.

Giga Shanghai’s new milestone

Tesla announced the milestone on X and Weibo, sharing images from the facility where the five millionth pack was completed. Images showed the Giga Shanghai team posing for a commemorative photo with the facility’s five millionth battery pack. Several of the company’s executives congratulated the Tesla China team for its recent milestone, including SVP Tom Zhu, who wrote “Power up, team!” in a post on X.

While Tesla designs and assembles its battery packs in China, the cells themselves are supplied by local partner CATL and South Korea’s LG Energy Solution, as noted in a CNEV Post report. Tesla China has stated that its pack safety standards exceed industry norms several times over, with longevity engineered to outlast vehicle lifespans.

Giga Shanghai’s growing role

Construction of Giga Shanghai began in early 2019, becoming China’s first wholly foreign-owned auto manufacturing facility. Giga Shanghai’s first phase was completed within the year, producing Model 3 sedans by the end of 2019. It now produces both Model 3 sedans and Model Y SUVs for domestic and export markets, with an annual capacity approaching one million vehicles.

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Despite the record-setting battery milestone, Tesla China’s recent domestic results left a lot to be desired. As per the China Passenger Car Association, Tesla’s retail sales in October dropped 36% year over year to 26,006 units, the lowest since late 2022. Analysts attributed the decline to Giga Shanghai’s focus on exports last month, as well as the ramp of compelling rivals like the Xiaomi YU7.

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Tesla confirms upcoming launch of FSD Supervised in South Korea

The announcement came through a post from Tesla Korea’s official account on X.

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Credit: Tesla Korea

Tesla has confirmed that it will be releasing its Full Self-Driving (FSD) Supervised system in South Korea. The announcement came through a post from Tesla Korea’s official account on X, which featured a video showing the system navigating local roads in a Tesla Model S sedan.

FSD Supervised in South Korea

The teaser video posted by Tesla Korea showed a vehicle performing lane changes, navigating intersections, and even parking without driver input, all while the driver kept their hands off the steering wheel. The footage was filmed on domestic roads, suggesting that Tesla Korea has been initiating FSD test drives in the country for some time.

Tesla’s FSD software currently exists in two versions: supervised and unsupervised. The supervised version still requires driver attention, while the unsupervised variant, which is being used in the company’s Robotaxi service, allows full autonomy. Tesla has confirmed plans to expand supervised FSD to Europe, and China, as well as markets like Japan, sometime next year.

South Korea’s FSD likely for U.S.-made cars to start

In South Korea, Tesla’s popularity has surged despite FSD not yet being available in the country. This is largely due to the new Model Y, which was launched in April. Thanks to the vehicle’s reasonable price and features, the new Model Y has driven domestic sales up 92.8% year-over-year, securing Tesla’s place among the country’s top imported carmakers.

With FSD, Teslas become significantly more compelling vehicles. Analysts warn, however, that legal and regulatory hurdles could complicate FSD’s local introduction. Over 80% of Teslas sold in South Korea are manufactured in China, and those vehicles must comply with domestic safety standards, as noted in a Chosun report. 

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Industry experts suggest the first wave of FSD-enabled vehicles will likely be U.S.-made, as models built under the Korea-U.S. Free Trade Agreement automatically meet South Korean safety requirements.

“Since the supervised FSD is a technology that assists driving, its introduction in South Korea is technically feasible. However, potential conflicts with domestic road laws and safety standards are a concern,” one industry insider told local media. “US-made vehicles are not subject to South Korean safety standards due to the Korea-US FTA, making FSD implementation relatively easier, whereas the situation differs for Chinese-made vehicles.

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