Published , by Chris Jarrard
Published , by Chris Jarrard
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.