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Tesla shuts California factory for two days, Elon Musk blames parts shortages

Tesla Chief Executive Officer Elon Musk mentioned the electrical automobile company’s Fremont, California plant shut down for two days this week as a result of “parts shortages” and had reopened on Wednesday.

Shares of Tesla fell 8% through the day after Bloomberg reported that manufacturing of Tesla’s inexpensive sedan, the Model 3, had been quickly suspended, elevating questions on whether or not it had sufficient provides to maintain the meeting line shifting.

Several automakers, together with General Motors Co, Volkswagen AG, and Ford Motor Co, are hit by the scarcity of chips, forcing them to scale down manufacturing.



“Fremont shut down for two days (parts shortages) & restarted yesterday,” Musk mentioned in a Twitter posting.

An individual with information of the state of affairs instructed Reuters that at the very least some staff had been instructed they might take off Wednesday and Thursday, whereas one other individual mentioned some worker parking tons appeared to have fewer individuals than standard on Thursday.

Electric automobile information supply Electrek quoted Musk as telling workers that manufacturing of Model 3 and the Model Y small SUV would pace as much as full manufacturing over the subsequent few days.

“We are experiencing some parts supply issues, so we took the opportunity to bring Fremont down for a few days to do equipment upgrades and maintenance,” Musk mentioned in an worker e-mail, based on Electrek.

Musk additionally mentioned that the company was scaling up manufacturing of its costlier Model S and Model X traces, which might quickly return to two shifts, he mentioned, based on Electrek.

The company couldn’t be instantly reached for remark.

Tesla mentioned final month that it would face a short lived influence from a worldwide semiconductor scarcity and logistics disruptions at ports.

“This is an industrywide problem rather than anything Tesla-specific. But this episode provides a very useful reminder that EV manufacturing is subject to periodic supply chain bottlenecks, whether related to chips, or batteries, or other components,” Raymond James analyst Pavel Molchanov mentioned by e-mail.

Samsung Electronics, which provides chips that management self-driving capabilities to Tesla, final week mentioned it had suspended its factory in Austin, Texas as a winter storm brought on energy outages. The Tesla chips are made within the Texas factory, the automaker mentioned two years in the past.

Samsung declined to establish its prospects for the factory.

It was unclear how a lot quantity or income Tesla would lose as a result of manufacturing halt. The Fremont plant has an annual manufacturing capability of 500,000 Model 3s and Model Ys mixed.

Tesla final week diminished the value of its cheaper variants of the Model 3 and the Model Y, the newest in a collection of worth cuts at a time when legacy automakers try to struggle again with new fashions.

This story has been revealed from a wire company feed with out modifications to the textual content. Only the headline has been modified.


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