Canadian Manufacturing

Tesla shuts down Model 3 assembly again to fix bottlenecks

The automaker told employees this week there would be a four- or five-day production hiatus. One car analyst says a delay of this length is not normal

April 17, 2018  by The Associated Press

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.

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Model 3 production began in early July 2017 in Fremont, California. Pricing starts at about $35,000.