Tesla's Model 3 production line temporarily suspended

The company has yet to publicly confirm the reasons behind the production line stoppage.

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Management at Tesla’s Fremont, California plant reportedly informed workers that the production line for the Model 3 sedan would be suspended as long as two weeks. The production delay is said to run from February 22 through March 7.

The initial Bloomberg report claimed that some of the Fremont production line employees were back at the plant as early as February 24. The company has yet to publicly comment on the report, though it has previously mentioned that delays from the global semiconductor shortage and congestions at ports could affect overall output.

The Bloomberg source also mentioned that the nation’s recent issues with inclement weather have been a contributing factor to the production stoppage. Tesla is not the only automaker facing temporary halts in production. Both General Motors and Ford have been forced to suspend production lines at plants as a result of semiconductor shortages. 

The Fremont, California plant is capable of producing as many as 500,000 Model 3 and Model Y vehicles each year. This temporary shutdown is not expected to have a meaningful impact on Tesla’s ability to meet its delivery goals for the year. Early morning trading for Tesla (TSLA) saw shares drop as much as 5% in value.

Contributing Tech Editor

Chris Jarrard likes playing games, crankin' tunes, and looking for fights on obscure online message boards. He understands that breakfast food is the only true food. Don't @ him.

From The Chatty
  • reply
    February 25, 2021 11:10 AM

    Chris Jarrard posted a new article, Tesla's Model 3 production line temporarily suspended

      • reply
        February 25, 2021 9:13 AM

        Page doesn't exist

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        February 25, 2021 9:19 AM

        I wonder if this is going to have a knock on affect for all of tech.

        Bubble pops

        China wins.

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          February 25, 2021 9:20 AM

          Very much so, that’s why the president got involved with his executive order yesterday.

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          February 25, 2021 9:27 AM

          It’s just a 2 week shutdown.

          Also, the Biden administration is doing the preparatory study on the global chip shortage to lead to what will probably turn out to be a program of incentives to get chip fabs off the ground here in the US. It’s too long coming. Corporate welfare isn’t going anywhere, so it should at least go to crucial growth industries, rather than just more pork to the military industrial complex, etc.

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            February 25, 2021 9:30 AM

            Watcherxp just posted the link above, but here’s a news article for a quick read, from GameStop of all places haha: https://www.gamespot.com/articles/ps5-xbox-series-x-component-shortage-to-be-investigated-president-biden-says/1100-6488026/

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            February 25, 2021 10:09 AM

            it takes billions of dollars and multiple years to build a fab and get production going. Due to Low margin on chips used in cars it can take upwards of a decade to recoup your cost.

            Point is even if the US decided to subsidize US fabs it'll still take 5-10 years to see any results. Not suggesting we don't take action, but help is not coming anytime soon.

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              February 25, 2021 10:19 AM

              Yeah it won’t be overnight, but they’re not doing this inquiry just to continue ridiculous Trump-era trade wars.

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                February 25, 2021 10:21 AM

                It should have been five years ago from a national security perspective.

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              February 25, 2021 10:25 AM

              ^ there’s a reason no one else has ousted Chinese manufacturing. It’s not just cost of the products at this point. China basically has the most expertise, fabs and infrastructure for it in the world and building competitive manufacturing elsewhere is a decade+++ proposition

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                February 25, 2021 12:34 PM

                If we push hard we will have the edge over them in 10 years. There’s no reason at all for us to remain reliant on China and Taiwan for something as critical to our economy and national security as semiconductors.

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                  February 25, 2021 2:12 PM

                  I don't know why you think you'll have the edge over them. They are willing to work harder and throw more money at the problem.

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                    February 25, 2021 2:21 PM

                    How many of their home grown chips come close to what Apple\AMD\Intel\NVidia are developing? I don't see why we couldn't gain an edge if we threw enough money at the problem.

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                      February 25, 2021 2:26 PM

                      Just because you are good in one thing doesn't mean you automatically will be good at another. US exceptionalism is just bullshit propaganda. China has many decades in both money and development on any other country here. That's not to say that in 20 years the US couldn't be good at this, but I see no reason to believe it will necessarily have any edge on China. It's not like China is going to be standing still in those 20 years. Generally competitions breeds equals, not one dominant player.

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                        February 25, 2021 8:03 PM

                        It depends on if the US can continue the brain drain. For centuries people escaped shitty governments all over the world to come here. We just attracted talent for a very long time.

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                      February 25, 2021 2:39 PM

                      they’re not that far off.

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                  February 25, 2021 2:27 PM

                  Is cheap labor a factor in all of this? I mean maybe not.

                  I feel like it costs less to live in China then somewhere else. Maybe that's gradually becoming less true.

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                  February 25, 2021 3:56 PM

                  Where would the rare ore come from?

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                February 25, 2021 1:10 PM

                I think the real reason in the past was “it’s cheaper and all our corporate buddies we give money to are in oil & gas”.

                So, time for Rip Van Winkle to wake up and get busy.

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                  February 25, 2021 1:59 PM

                  Well yeah of course. That was the push of globalization some 44 years ago. Make your stuff cheaper elsewhere.


                  My point was even with buy in from all directions it will take forever. Not that we shouldn’t necessarily, though the long term political ramifications of destroying chinas economy is uhh probably bad.

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                    February 25, 2021 2:00 PM

                    And by cheap I mean essentially for free lmao slave labor yeah boy

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                    February 25, 2021 2:04 PM

                    I’m not one for being motivated to do this to destroy China or because of being afraid of China. I think we need to find new ways of working together on a global scale. Short term, mid term and long term have to be planned all together and use carrots, not just sticks, to create better conditions for all.

                    I really don’t approve of the moves Xi has made towards dictatorship, but a little honey may catch a few flies for now, if we work together on some big picture issues.

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                      February 25, 2021 2:07 PM

                      Oh I’m all for a unified economic policy like that. That sounds great.

                      Most people see it as a ‘national defense’ issue which is to say kneecapping China with no forethought and just making shit worse for pacific politics.

                      It’s short sighted jingoistic trash. Your idea is actually good!

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                        February 25, 2021 2:20 PM

                        Yeah I honestly think Biden has put this inquiry into effect for serious planning reasons, fact-finding.

                        Not showboat jingoism...that’s the previous administration, and they didn’t bother to use any kind of normal academic research as a basis for their chaotic policies.

                        I guess Twitter is turning this into a continuation of Trump style jingoistic fear mongering, but I suspect more analytical minds are working on this now. But of course, gotta wait and see what comes of it. I don’t think we’ll have too long to wait. He’s already spoken extensively to Xi: https://www.latimes.com/politics/story/2021-02-10/biden-has-first-call-with-xi-of-china

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                      February 25, 2021 2:17 PM

                      Frankly, the biggest problem is the US's slide into fascism. Biden admin is a temporary reprieve but the problem is still there. Without fixing this everything breaks down. As a Canadian, if we're looking at a potentially fascist US then a weaker US is better for Canadians. Already with the vaccines it's clear that we can't count on the US to support us, we need our own manufacturing. But then, if everyone feels this way it's the opposite of working together. It's not a future I look forward to.

                      So to me, it's 1. bury the fascism somehow. 2. Restore relationship with traditional allies like Canada. Neither of these will happen overnight. Then maybe we can work together to diversify manufacturing among friendly nations, as that would be the most robust system. Having manufacturing move from China to the US would just move the problem, not fix the problem.

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                        February 25, 2021 2:24 PM

                        There’s no way to move the entire industry out of Asia. That’s folly. We’re going to need to expand the industry and organize globally, treating chip manufacture as a valuable commodity like oil has been.

                        I think Biden has a big job ahead of him, but at this point, it’s probably better to quickly consolidate international support, as that will help greatly in dealing with the fascist moment, which is globally engineered, not just a US product by any means.

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                          February 25, 2021 2:30 PM

                          Having technology be shared by many nations is the best for us all, I agree. It's pretty much opposite of US foreign policy though. Maybe that will change, we'll see.

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                            February 25, 2021 2:36 PM

                            Foreign policy under Obama was going in the direction of more international cooperation. A normal administration, even a normal Republican one would’ve followed the course, maybe a little slower maybe a little faster. It was absolutely unheard of how Trump threw international trade deals (WITH ASIA) that had taken multiple administrations to craft right out the window.

                            It’s also sad to think people don’t remember what was going on Before Trump, but obviously Biden’s team is trying to operate on a salvage mentality first, which is for the best, if it works.

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                    February 25, 2021 3:57 PM

                    Was it really cheaper? Seems like we just aren't pricing the externalities like carbon emissions (shipping) and labor practices of other countries. These things still have effect on us, but we just chose paying less up front.

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              February 25, 2021 10:32 AM

              probably worth doing so we aren't so reliant on China all the time

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                February 25, 2021 12:33 PM

                10 years from now after China invades Taiwan... hey guys how come I can’t get my hand on a PS6?????

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                February 25, 2021 1:06 PM

                Not even a question of reliance, tbh. Global supply needs to be expanded for the benefit of all economies.

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              February 25, 2021 12:31 PM

              Best time to plant a tree is 20 years ago, second best time is today.

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                February 25, 2021 3:59 PM

                Is third best after you do a six month review of why thee are so few trees?

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                  February 25, 2021 4:08 PM

                  Well you wouldn’t want to plant a tree before you check the soil and the sun exposure and had a workable plan for watering it, pruning it and preventing diseases....unless you want a weak or dead tree 6 months after you plant it.

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                    February 25, 2021 4:18 PM

                    You can take steps now, much like we did last year, while you conduct every study you want. I think we have a good idea what we need to do to get where we want to go. It's not like other people haven't already studied these problems, even in the US govt, but ultimately it's going to require a ton of spending and ultimately higher consumer prices at least in the short term. (next 10 years)

                    The review thing sounds like someone with a severe addiction to cheap foreign tech that is saying any day now will get their shit together once they figure out whatever that means.

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                      February 25, 2021 5:27 PM

                      Steps are being taken: https://www.latimes.com/politics/story/2021-02-10/biden-has-first-call-with-xi-of-china

                      “Don’t think Biden called and talked for 2 hours just to ask meekly what Xi wants.

                      I’d say people need to give these things more than a week or two, realistically. We’re not in the Trump administration anymore.

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                      February 25, 2021 7:48 PM

                      I think Biden wants to have an iron tight case to put before congress, lay out the case for why this is important and make a public appeal. This is the sort of thing the president should be doing, it's just that after 4 years of Trump we've mostly forgotten what a POTUS is supposed to do.

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              February 25, 2021 12:31 PM

              Sounds like we need to get started ASAP, it’s not like chips are going to be less important to our economy and security 10 years from now. Over reliance on Asia is fucking stupid.

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              February 25, 2021 1:10 PM

              Time to just roll over and die then

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                February 25, 2021 1:46 PM

                I really want to know what these people think the world will look like in 5-10 years. Like, that's not even THAT long for a big project, and we're already seeing how dangerous it is to be too reliant on China for hardware we need (see the 5G spyware debacle). Do they think being even more reliant on an authoritarian regime for something as important as microchips is going to work out well for us?

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                  February 25, 2021 3:53 PM

                  If your wondering about me I think much more is needed and I'm not impressed with all the fawning over a simple review. Biden should take action now and invoke the defense production act.

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                    February 25, 2021 4:41 PM

                    Not you in particular, just lots of people seem to think it’s not worth doing since it’s hard. I think I misunderstood what you were trying to say

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                February 25, 2021 3:47 PM

                Great reading comprehension. What in my posts a suggest we should 'roll over and die'? The US is excessively behind here and as I said that was my point. I do think the general optimism in repsonse to a simple review is a bit much.

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              February 25, 2021 1:14 PM

              So steal / hire their expertise. That's what they do. We need to massively scale up our defensive economic systems to meet the threat that China is.

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            February 25, 2021 10:30 AM

            Even if Japan/Taiwan/Korea and other heavy US allies get on board with manufacturing, we're a decade away from what China has right now.

            China not only has rare Earth materials, but they have some of the most advanced tooling and manufacturing around. Even if the US Gov opens their wallets to give tax breaks to companies that built out, China has all the TALENT that runs and maintains this stuff. If you snapped your fingers (Thanos) to have the same factories, you'd be sponsoring H1B Visa's from China due to the lack of folks that know how to use all this fancy new gear.

            The initiative is good, it's well intentioned, but there has to be significant buy-in from a lot of players, immediately.

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              February 25, 2021 12:21 PM

              So bring Chinese brain trust over, as you say. Still better than the irrational policies of the past 4 years. It’s a decent chess piece in the giant diplomatic rebalancing game that got cut off at the knees when it most needed to be carefully continued. It’s not going to be simple, easy or quick, but we have to get back on track as a member of the international community, politically, scientifically and yes, corporately.

              A giant, 4-year snooze fest after years of kicking the can down the road to score political points on all sides is done.

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                February 25, 2021 12:26 PM

                yup. some actual business acumen is at hand, the last 4 years was provocation and posturing to appease "the art of the deal" in which it's clear WE GOT FUCKING DUNKED ON FOR 4 YEARS STRAIGHT

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                  February 25, 2021 1:09 PM

                  This thread sounds like people have totally forgotten what a normal functioning government guided international business policy program is.

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              February 25, 2021 12:36 PM

              We have plenty of rare earth metals, we just don’t bother digging them out of the ground.

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                February 25, 2021 12:37 PM

                And we have all the money in the world to secure buy in. This is a national security issue and we’re not shy about defense spending

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                February 25, 2021 1:03 PM

                I think one of the problems is also that you often find things like Thorium with rare earths and it requires special handling due to a nuclear non-proliferation treaty which drives costs to extract them very high in the US and most Western countries. Or at least that was discussed during a talk about LFTR nuclear reactors and it stuck in my mind.

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                  February 25, 2021 2:38 PM

                  Probably one other reason the international community had been ok to kick the problem over to China previously.

                  Being more responsible about the ecological impact of this tech is wise to get under control sooner, as opposed to later.

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                    February 25, 2021 4:50 PM

                    Nimbyism is a huge part of globalization yep

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            February 25, 2021 12:27 PM

            My douchebag Senator is all about moving chip fabs to the United States. So I just assumned it was some racist dog whistle anti China shit.

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            February 25, 2021 12:32 PM

            The recent winter storm here in Austin also caused fabs owned by NXP and Samsung to shut down, and at least as of Tuesday they were still down.

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            February 25, 2021 2:14 PM

            We have had chip manufacturing here in the US for decades. Particularly here in the PNW. But we have also had several close down over the years.

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        February 25, 2021 1:42 PM

        2021 is becoming quite the Chips Challenge

        😎

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          February 25, 2021 1:43 PM

          Thank you.

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          February 25, 2021 2:12 PM

          I lol'd this but I want you to know I'm not proud of it ;)

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        February 25, 2021 3:24 PM

        Elon probably just redeploying the chips to mine more bitcoin.

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