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

Tesla Chief Government Officer Elon Musk stated the electrical automobile firm’s Fremont, California plant shut down for 2 days this week attributable to “components shortages” and had reopened on Wednesday.

Shares of Tesla fell 8 % throughout the day after Bloomberg reported that manufacturing of Tesla’s cheaper sedan, the Mannequin 3, had been briefly suspended, elevating questions on whether or not it had sufficient provides to maintain the meeting line transferring.

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

“Fremont shut down for 2 days (components shortages) & restarted yesterday,” Musk stated in a Twitter posting.

An individual with data of the scenario instructed Reuters that a minimum of some employees had been instructed they may take off Wednesday and Thursday, whereas one other particular person stated some worker parking tons appeared to have fewer folks than traditional on Thursday.

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

“We’re experiencing some components provide points, so we took the chance to convey Fremont down for just a few days to do gear upgrades and upkeep,” Musk stated in an worker e mail, in line with Electrek.

Musk additionally stated that the corporate was scaling up manufacturing of its costlier Mannequin S and Mannequin X strains, which might quickly return to 2 shifts, he stated, in line with Electrek.

The corporate couldn’t be instantly reached for remark.

Tesla stated final month that it would face a brief affect from a world semiconductor scarcity and logistics disruptions at ports.

“That is an industrywide drawback moderately than something Tesla-specific. However this episode gives a really helpful reminder that EV manufacturing is topic to periodic provide chain bottlenecks, whether or not associated to chips, or batteries, or different parts,” Raymond James analyst Pavel Molchanov stated by e mail.

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

Samsung declined to establish its clients for the manufacturing unit.

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 Mannequin 3s and Mannequin Ys mixed.

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

© Thomson Reuters 2021

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