March 1, 2021

Elon Musk confirms Tesla plant closure amid stock slide

‘Tesla Daily’ host Rob Maurer discusses how the electric vehicle company aims to build 1.5…

Tesla CEO Elon Musk confirmed Thursday night that the automaker’s Fremont, Calif., factory had shut down for two days this week due to a parts supply issue, but was back up and running.

Musk was responding to a Twitter follower asking for an update after Bloomberg reported that the Model 3 production line at the plant would be closed for two weeks.

Tesla shares fell 8% on Thursday and were down in pre-market trading Friday. Earlier this week the stock entered a bear market, down 20% from recent highs.

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Musk didn’t elaborate on the supply issue, or whether it was the entire plant that had closed and reopened. Along with the Model 3, the facility produces the Model Y, Model S and Model X.

Tesla does not have a functioning media relations department that responds to requests for information.

Reuters reported that known Tesla supplier Samsung had to pause production at its Texas manufacturing facility for several days due to the recent storms that devastated the state, but the electronics company declined to comment on the Tesla situation.

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Electrek reported that Musk told Tesla employees in a letter that it took advantage of the shortage to “do equipment upgrades and maintenance” and that it “will speed up rapidly to full Model 3/Y production over the next few days.

Musk also suggested that Model S and Model X production was not currently underway as the factory is being retooled to build the recently-revealed updated versions of the vehicles.

“Model S/X production lines are almost done with the retooling and will be aiming for max production next quarter. There is high demand, so we are soon going to need to go back to two shifts. Please recommend friends for recruiting,” Musk wrote in the note, the content of which has not been independently confirmed by FOX Business.