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Tesla temporarily suspended Model 3 and Model Y production last month

Why? The company ran out of parts!

7w ago
12.3K

Tesla is a company that always seems to swing from one level of unpredictability to the other. There's no telling a lot of times what will happen next to the American tech giant. Now it seems like it's really in a pickle right now when it comes to Model 3 and Model Y production, as Elon Musk himself announced recently that production for both of those models at the company's plant in Fremont, California had been temporarily suspended last month. The reason why? Tesla had run out of parts.

Further detective work done by Electrek also revealed an internal e-mail sent by Musk a week ago to employees. In the e-mail, Musk confirmed the plant's shutdown and that it was due to parts supply issues. In light of this, Musk then decided to close the entire factory down for a few days, stating that, "we are experiencing some parts supply issues, so we took the opportunity to bring Fremont down for a few days to do equipment upgrades and maintenance." He then went on to add that "Fremont production is back up and running as of yesterday and will speed up rapidly to full Model 3/Y production over the next few days."

Interestingly, Musk also confirmed in the same e-mail that the retooling for the refreshed versions of the flagship Model S and Model X models was almost done and that production of these models would be ramped up to meet additional demand. "Model S/X production lines are almost done with the retooling and will be aiming for max production next quarter", Musk stated in the internal communication. "There is high demand, so we are soon going to need to go back to two shifts. Please recommend friends for recruiting."

Despite it only being a temporary issue that's now been properly resolved, it had a noticeable effect on the company's values. Shares dropped by 8% following the suspension's announcement. Whilst the stock market can be fickle and things can change on a moment's notice, it's definitely not the best news for a publicly-traded company such as Tesla.

Tesla isn't the only company affected by parts supply issues, either. This is a part of a greater problem of a microchip shortage that's affecting companies all over the world in all sorts of different industries. This microchip shortage has caused General Motors and Ford, amongst others, to scale back production somewhat. It's also been theorised that a shutdown of a Samsung plant in Austin, Texas, where the chips for Tesla's self-driving technology are manufactured, due to snowstorms could also be to blame for the lack of parts. Musk hasn't specified exactly why there was a parts shortage so, at the moment, we don't really have any idea what's been going on.

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Comments (7)

  • Just hope no one has phoned in needing parts replaced under "warranty".

      1 month ago
  • Less parts there, less that can fall off at least😂

      1 month ago
  • You fail to mention that this also applied to MOST manufacturers and that while Tesla was closed for about three days, many plants closed for over a month!

      1 month ago
    • Was this the one with the computer chip shortage?

        1 month ago
    • I don't know about Tesla, because their orders were never altered. Unlike other manufacturers, their production facilities were at full blast because they couldn't keep up with demand. Other manufacturers had backed off on their JIT...

      Read more
        1 month ago
  • Seriously? The automotive supply chain is, say, 20 miles long and 1/2 inch thick - at best. Get with the program.

      1 month ago
  • They ran out of parts🤣

      1 month ago
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