Tesla share price continues to tumble down towards its bond price following headlines from Reuters, citing sources, that the car-making company will shutter production of the Model 3 from May 26th to 31st for "fixes to its assembly."
- TESLA PRODUCTION SHUTTERED FROM MAY 26-MAY 31, REUTERS SAYS
- TESLA IS SAID TO PAUSE MODEL 3 PRODUCTION FOR FIXES: REUTERS
Reuters notes that two sources confirmed that the next stoppage on the general assembly line at the Fremont, California, plant was scheduled for May 26-31.
The production-challenged electric vehicle maker previously warned of 10 days of temporary shutdowns this quarter as the company addresses manufacturing problems that have delayed volume production of the Model 3 sedan, which is seen as crucial to Tesla’s long-term profitability, Reuters adds.
This follows the previous production halt on April 17th to make "on-the-fly fixes", as well as a prior stoppage in February. The April shutdown, combined with the upcoming one, would add up to the planned 10 days of stoppages.
Tesla has been struggling to find solutions to manufacturing bottlenecks on the new assembly line that produces the Model 3, a sedan intended for volume production. An over-reliance on robots has complicated that task, Chief Executive Officer Elon Musk has acknowledged.
Musk, Tesla’s billionaire founder, told employees it was “quite likely” the company would reach a rate of 500 Model 3s per day this week, or 3,500 a week, automotive news website Electrek reported on Tuesday, citing an internal email. Musk also told staff to alert him of “any specific bottlenecks” on the production line.
While Musk has said the planned stoppages are intended to give the company time to perform upgrades that will help it reach a goal of building 6,000 vehicles per week by the end of June, the market is becoming increasingly skeptical, especially since in order to meet the production goal of 6,000 cars per week by the end of July, Musk said last month that all Model 3 production would begin working around the clock.
Reuters learned that the teams working on general assembly have already switched to three shifts, a schedule that helps maximize capacity and flexibility; the news wire adds that teams working on the body of the vehicle - where the external shell of the car is assembled - are working in two 12-hour shifts.
Meanwhile, TSLA is extending losses:
Catching down to the bond's weakness...
Comments
You're blocked. Going to youtube...
https://twitter.com/elonmusk/status/995065228403458048
Thank
In reply to https://twitter.com/elonmusk… by SloMoe
Think Missing Cobalt ???
Is that whats causing the ugly Problems ???
In reply to Thank by Cognitive Dissonance
The robots are demanding collective bargaining.
In reply to d by BaBaBouy
I blame the Federal Reserve and their easy money/QE policies for causing all these distortions in the free-market, where Mal Investments like Tesla and Bitcoin are propped up when they really shouldn't be.
In reply to https://twitter.com/elonmusk… by SloMoe
LOL BTC what about fiat? Great history of losing 95% value in the last 50 years...dope
In reply to I blame the Federal Reserve… by lester1
Tesla down. North Korea talks scuttled.
Another great day in America.
In reply to Tesla down. North Korea… by Heroic Couplet
The burning Teslas on the side of the road make for a decent metaphor for our tax dollars.
In reply to Tesla down. North Korea… by Heroic Couplet
6 days?
What is that, like 3 cars?
pods
shut down for a week... not really an impact on production
Don't use the word impact! Tesla is very sensitive about the word impact.
In reply to shut down for a week... not… by dark pools of soros
Yet another sad attempt at a shrill headline.
ZeroHelp must be struggling for readers these days, we predicted this would happen thanks to their politically-motivated one-sided views.
Thankfully we can go to CNN for unbiased repeating....er....umm.....
In reply to Yet another sad attempt at a… by Bertie Wooster
Tesla owners are a sensitive bunch
In reply to Thankfully we can go to CNN… by Cognitive Dissonance
I don't even read the articles. I just come here to enjoy the brilliantly worded anti-Semitic comments.
In reply to Yet another sad attempt at a… by Bertie Wooster
written with the eloquence of a joo banker.
In reply to I don't even read the… by Solosides
Oi Vey! I've been found out!
In reply to spoken with the eloquence of… by buzzsaw99
and by the way, vehicle sales ain't exactly tearing it up with the clamp down on subprimers
btfd sarc
they are probably putting asbestos underwear in the glove box.
Stop it with boring reality. Now let's go to YouTube...
The perk of getting a free flame thrower under the hood is not paying off? shocker
Hugely overvalued company halts their most marketable (affordable to the masses) product and is down less than %5. Let that sink in for a minute. All the hype gets priced in and all the reality gets ignored.
this does not matter. there is better commentary on Tesla at climate websites. Musk is a subsidy farmer and if California pours another 2-3 billion in the trough TSLA will be just fine. Cars, AI and space ships are just props to extract subsidy nobody should pay attention to his manufacturing operations.
Anyone know how long's the waitlist for a chance to be burned alive in a Tesla? At 35k$ its quite a firesale!
it's faster if you join their "make your own tesla" program.
In reply to Anyone know how long's the… by boostedhorse
Sign of the Times? $10+Billion in #Debt, No Earnings, & Huge Staff Departures at Tesla