The Mercury News

Tesla shuts down Model 3 production for up to five days

- By Ethan Baron ebaron@bayareanew­sgroup.com Contact Ethan Baron at 408-920-5011.

Embattled Tesla has temporaril­y shut down the assembly line for the Model 3, the electric sedan widely seen as critical to the success of the Palo Alto company.

Production of the Model 3 has been plagued by delays, with CEO Elon Musk forced twice to announce the firm would not hit manufactur­ing targets.

Now, Tesla has shut down the Model 3 assembly line at its Fremont factory.

The pause in production of the car will last four to five days, and came “without warning,” employees reportedly told Buzzfeed.

A Tesla spokespers­on said Model 3 production included “periods of planned downtime” at the Fremont plant and its Nevada battery factory.

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

“This is not unusual and is in fact common in production ramps like this.”

On Friday, Musk had tweeted that “excessive automation at Tesla was a mistake.”

Musk added, “Humans are underrated.”

The Model 3 starts at $35,000, but only premium-priced versions are currently in production, according to the company. Tesla says nearly a half million pre-orders have been made for the Model 3.

Model 3 production had been suspended for a week in February, with the company providing the same comments about “planned downtime” to “improve automation and systematic­ally address bottleneck­s in order to increase production rates,” according to a Bloomberg report in March.

On April 3, Tesla issued a press release saying “several short factory shutdowns to upgrade equipment” had helped it double the weekly Model 3 production rate for the first quarter of this year. Although the company said it had increased Model 3 production “exponentia­lly” in the quarter, the 9,766 cars produced represente­d a much slower output than the 5,000 per week it had promised to make by the end of December, then by the end of March, and now by the end of June.

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.

And on Monday, the Center for Investigat­ive Reporting published a report alleging that Tesla had “failed to report some of its serious (workplace) injuries on legally mandated reports, making the company’s injury numbers look better than they actually are.”

In a venomous blog post, Tesla denied the claims.

“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.

Adding to the firm’s troubles was a March recall of 123,000 Model S sedans, to fix a power-assisted steering problem related to bolts that may corrode.

 ?? ETHAN BARON STAFF ARCHIVES ?? After being plagued by delays, Tesla will pause its production of the Model 3 once again. “These periods are used to improve automation and systematic­ally address bottleneck­s in order to increase production rates,” said a Tesla spokespers­on.
ETHAN BARON STAFF ARCHIVES After being plagued by delays, Tesla will pause its production of the Model 3 once again. “These periods are used to improve automation and systematic­ally address bottleneck­s in order to increase production rates,” said a Tesla spokespers­on.

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