Tesla Shutting Down Operations for 6 Days to Fix Production Issues

Tesla Shutting Down Operations for 6 Days to Fix Production Issues

Author: Paul Young   

Tesla cannot seem to stay out of the news lately. Days after another crash involving Tesla's Autopilot system and the departure two key executives, the company announced it is shutting down its Model 3 assembly line for six days at the end of this month to fix production problems.

Tesla said it will pause production at its Fremont, California factory at the end of the May to work on fixes to its assembly line for its new Model 3 sedan, sources inside the company told Reuters.

The Silicon Valley electric automaker previously warned of 10 days of temporary shutdowns this quarter as the company addresses manufacturing problems that have delayed volume production of the Model 3 sedan, which is seen as crucial to Tesla's long-term profitability.

Earlier this year, Tesla CEO Elon Musk said the company would hit its goal of building 5,000 model 3's per week by June. However, Tesla's assembly line was plagued with ‘production bottlenecks" which prevented the company from reaching its goal. Tesla is building around half of it projected volume. Tesla is producing about 2,660 Model 3's per week, according to Bloomberg's Tesla Tracker.

Currently, Tesla has around 500,000 preorders for its more affordable model 3, its first mass-market electric car. Tesla is counting on revenue from Model 3 buyers to raise much needed capital, as the company burns through cash.

Two sources confirmed to Reuters that the next stoppage on the general assembly line at the Fremont, California, plant was scheduled for May 26-31.

Paul Young
Paul Young
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