Tesla shuts down Model 3 assembly again to fix bottlenecks

Apr. 17, 2018 – Shares of Tesla Inc. traded lower Tuesday after reports that the company had shut down production of its Model 3 mass-market electric car again to solve manufacturing bottlenecks.

The automaker told employees this week there would be a four- or five-day production hiatus. The company says it warned of future production pauses when it shut down the line to improve automation in February.

Tesla says shutdowns are common when a new model is launched and will improve production rates. But Autopacific analyst Dave Sullivan says manufacturing doesn’t normally stop for days, especially nine months after production began.

Tesla shares dropped 1 per cent to $287.80 in morning trading. The broader markets were up about 1 per cent.

Model 3 production began in early July in Fremont, California. Pricing starts at about $35,000.