Tesla temporarily halts its production at Model 3 line, California

Tesla Inc has told workers it will temporarily halt some production at its car assembly plant in California, Bloomberg News reported on Thursday, citing a person familiar with the matter.

Workers on a Model 3 sedan production line in Fremont were told their line would be down from Feb. 22 until March 7, according to the report.

Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. Tesla’s current products include electric cars, battery energy storage from home to grid-scale, solar panels and solar roof tiles, as well as other related products and services. Its CEO and owner is the billionaire Elon Musk.

The Tesla Model 3 is an electric four-door fastback sedan developed by Tesla. The Model 3 Standard Range Plus version delivers an EPA-rated all-electric range of 263 miles (423 km) and the Long Range versions deliver 353 miles (568 km) In 2020, Tesla produced over 450,000 of the Model 3/Y chassis automobiles.

While the report did not clarify the reason for the halt, it should be noted that Tesla said last month that it might face a temporary impact from a global semiconductor shortage.

Other global automakers like General Motors are shutting assembly lines due to chip shortages, as consumer demand has snapped back unexpectedly quickly from the coronavirus crisis.

It was unclear how much volume or revenue Tesla would lose due to the production halt. The Fremont plant has an annual production capacity of 500,000 Model 3s and Model Ys combined.

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

Tesla last week reduced the price of its cheaper variants of the Model 3 and the Model Y, the latest in a series of price cuts at a time when legacy automakers are trying to fight back with new models, reports Reuters.