Tesla to temporarily stop Model 3 production in the US

KUALA LUMPUR: Yes you read it just right. Bloomberg recently reported that Tesla Model 3 production is suspended at the automaker’s Fremont, California located plant. The concerned workers were told that the production line would be down from Feb 22 to March 7. The reason behind such a bold step on the part of Tesla is still unknown and none can reach Tesla for comment.

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However, if we recall it right, it was only last month that Tesla said that it might face the impact of global semiconductor storage. Around the globe several automakers, including GM are halting production due to the chip shortage as consumer demand has hiked unexpectedly after the pandemic crisis.

Samsung Electronics is one of the prominent chipmakers suspended production in its Texes factory due to power out caused by winter storm. Tesla in 2019 confirmed that its self-driving chips are produced at Samsung Electronics Texas factory.

With its factory shutting down for almost 15 days, Tesla must lose a sheer amount of revenue or volume. Though the exact figures are unknown, the Fremont plant’s annual production of Model 3 and Model Y combined is 500,000. Helping Tesla grow is the company’s Shanghai located Gigafactory that is now up and operational. Tesla Gigafactory 4 and 5 are currently in the making process in Texas, Germany, and Austin.

Tesla also has several factories in China that it said will be able to enhance its yearly sales volume by more than 50% annually.

It was only last week that Tesla reduced the price of Model 3 and Model entry-level variants.

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