Tesla CEO Elon Musk Says US Factory Closed for Two Days Due to Parts Shortages

Tesla Chief Executive Officer Elon Musk mentioned the electrical car firm’s Fremont, California plant shut down for two days this week due to “components shortages” and had reopened on Wednesday.

Shares of Tesla fell 8 % throughout 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 preserve the meeting line transferring.

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

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

An individual with data of the state of affairs instructed Reuters that no less than some employees had been instructed they may take off Wednesday and Thursday, whereas one other particular person mentioned some worker parking heaps appeared to have fewer individuals than typical on Thursday.

Electric car information supply Electrek quoted Musk as telling workers that manufacturing of Model 3 and the Model Y small SUV would velocity up to full manufacturing over the following few days.

“We are experiencing some components provide points, so we took the chance to carry Fremont down for just a few days to do tools upgrades and upkeep,” Musk mentioned in an worker e-mail, in accordance to Electrek.

Musk additionally mentioned that the corporate was scaling up manufacturing of its dearer Model S and Model X traces, which might quickly return to two shifts, he mentioned, in accordance to Electrek.

The firm couldn’t be instantly reached for remark.

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

“This is an industrywide drawback fairly than something Tesla-specific. But this episode supplies a really helpful reminder that EV manufacturing is topic to periodic provide chain bottlenecks, whether or not associated to chips, or batteries, or different elements,” 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 manufacturing facility in Austin, Texas as a winter storm brought about energy outages. The Tesla chips are made within the Texas manufacturing facility, the automaker mentioned two years in the past.

Samsung declined to establish its prospects for the manufacturing facility.

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

Tesla final week diminished the worth of its cheaper variants of the Model 3 and the Model Y, the most recent in a sequence of worth cuts at a time when legacy automakers try to battle again with new fashions.

© Thomson Reuters 2021

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