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Tesla Model 3 Facing Production Issues

Tesla has temporarily suspended its Model 3 assembly line in what the company said on Monday was a planned production pause, as the automaker continues to face challenges ramping up its new sedan. It was the second time since February that Tesla has temporarily shut down its production line for the Model 3 at its Fremont, California, plant.

“These periods are used to improve automation and systematically address bottlenecks in order to increase production rates,” a Tesla spokesperson said.

After delaying production of its Model 3 sedan, Tesla is now trying to catch up to a target of building 2,500 vehicles per week by the end of the second quarter. Problems within its heavily robotized assembly line have complicated those efforts.

Shares of Tesla were down 3% on Monday, pressured by Musk’s acknowledgement, a report alleging that Tesla undercounted worker injuries which the company denies and an amended lawsuit originally filed last year that alleges Musk misled investors about Model 3 production.

Daniel Sherman Fernandez
Daniel Sherman Fernandez
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