According to a report by Bloomberg, Tesla has temporarily suspended production at its assembly plant in Fremont, California. Staff at the facility’s Model 3 production line were told that their post would be down from February 22 until March 7, although some still reported for duty on February 24.
The production freeze comes as the electric car company is faced with supply chain issues, including backlogs at ports and severe snowstorms affecting ground transport. That’s not all, as a global semiconductor shortage, which has also affected many other carmakers, have left an impact on production.
Tesla’s California factory is an important site for the company, with an estimated capacity of 600,000 vehicles a year. However, with the ongoing supply chain problem, it’s unclear what impact it will have on the company’s volume and revenue.
Ramping up production is key to Tesla’s growth, and the company already has Gigafactory 3 in Shanghai up and operational. Gigafactory 4 and 5 are also currently being readied in Germany and Austin, Texas.
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