Tesla pauses Model 3 production for several days

Apr 17, 2018, 15:30
Tesla pauses Model 3 production for several days

Monday's announcement comes just three days after Tesla CEO Elon Musk expressed confidence he could speed up production of the company's vehicles.

A Tesla spokesman referred back to a statement provided last month, when Bloomberg News first reported that Model 3 production was idled from february 20 to 24.

The assembly line at the company's Fremont, ?California, plant will shut down as part of "planned downtime" to "improve automation", a Tesla spokesperson told dpa.

The Tesla Model 3 is Tesla's most affordable auto, designed for the mass market. More than 400,000 people have pre-ordered one, paying US$1,000 refundable fees to do so.

"Yes, excessive automation at Tesla was a mistake", Musk tweeted on Friday. For starters, Musk said that the Model 3 was decidedly easier to manufacture than previous Tesla vehicles.

Getting Model 3 output up to speed is crucial to generating revenue after the billions of dollars Tesla has spent to manufacture, recharge, service and fix more cars. In an interview with "CBS This Morning", Elon Musk admits to mistakes that have hindered the rollout of its most important vehicle to date. With a starting price of $35,000, the Model 3 is supposed to be Tesla's most affordable and top-selling auto.

In February, Tesla suspended production of its Model 3 for four days in what it said was planned work to adjust equipment in order to improve automation and address bottlenecks.

An unofficial estimate of Model 3 production by Bloomberg said Tesla had produced 16,823 vehicles by April 16, and that production rate as of that date stood at 2,688 cars a week.

While the firm has taken considerable heat over Model 3 production delays, it is also facing other significant problems that have led to public spats with federal regulators and an investigative journalism organization.

The company is feuding with the National Transportation Safety Board over a fatal Model X crash on Highway 101 in Mountain View on March 23 that involved the controversial "Autopilot" system that includes automated-driving features. This was projected by the company but its production report a couple of weeks ago showed the number at 2,020. The business's revenue was up 43.9% on a year-over-year basis. equities research analysts expect that Tesla will post -15.15 earnings per share for the current year.

"What they portray as investigative journalism is in fact an ideologically motivated attack by an extremist organization working directly with union supporters to create a calculated disinformation campaign against Tesla", the company said Monday.