Tesla shuts down Model 3 assembly again to fix bottlenecks
This undated image provided by Tesla Motors shows the Tesla Model 3 sedan. (Courtesy of Tesla Motors via AP)
The Associated Press
Published Tuesday, April 17, 2018 10:39AM EDT
Last Updated Tuesday, April 17, 2018 12:53PM EDT
FREMONT, Calif. -- Shares of Tesla Inc. traded lower Tuesday after reports that the company had shut down production of its Model 3 mass-market electric car again to solve manufacturing bottlenecks.
The automaker told employees this week there would be a four- or five-day production hiatus. The company says it warned of future production pauses when it shut down the line to improve automation in February .
Tesla says shutdowns are common when a new model is launched and will improve production rates. But Autopacific analyst Dave Sullivan says manufacturing doesn't normally stop for days, especially nine months after production began.
Tesla shares dropped 1 per cent to $287.80 in morning trading. The broader markets were up about 1 per cent.
Model 3 production began in early July in Fremont, California. Pricing starts at about US$35,000.