Tesla pauses production of the Model 3 in California

New York: Tesla Inc has informed workers that it will temporarily halt some production at its California assembly plant, Bloomberg News reported today, citing a person familiar with the matter.

Workers at the Model 3 Sedan production line in Fremont were told that their line would be down from February 22 through March 7, according to the report.

The report did not explain the reason for the stoppage, and Tesla was not immediately available to comment.

Tesla said last month that it may experience a temporary effect from a global semiconductor shortage.

Other global automakers such as General Motors have shut down assembly lines due to a shortage of chips, as consumer demand falls unexpectedly quickly from the coronavirus crisis.

Chip maker Samsung Electronics said last week that it had suspended its Texas plant due to a winter storm that caused a power outage.

Samsung has refused to identify its customers to the factory, but in 2019, Tesla said its self-driving chips are being manufactured at the Samsung plant in Texas.

It is unclear how much volume or revenue Tesla will lose due to the production shutdown.

Fremont’s annual production capacity is 500,000 Model 3s and Model Ys combined.

Tesla, which also has production facilities in China, said last month that it may be able to increase its annual sales volume by more than 50% this year.

Tesla last week slashed the price of its cheaper variants of the Model 3 and Model Y, the latest in a series of price cuts as old carmakers try to resist newer models.

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