Home / Business / Tesla Fremont Factory Shutdown in late May to focus on Model 3 Assembly Line enhancements

Tesla Fremont Factory Shutdown in late May to focus on Model 3 Assembly Line enhancements


Published on May 16, 2018 |
by Carolyn Fortuna

16. May 2018 by Carolyn Fortuna

Tesla is reportedly to suspend production at its Fremont factory from May 26 to 31

, 2018 for six days Standstill will allow the all-electric luxury automaker to make some adjustments to its Model 3 Pipeline, sources within the company said Reuters . (Note: There are rumors that the downtime will be shorter than originally planned, only the weekend of May 26-27.)

The delayed series production of the Model 3 sedan had an effect on the shareholders' letter in the first quarter of 2018 on the Tesla stock forecasts. The media – airwaves were also filled with predictions of melancholy, all of which are at the center of the upcoming factory closure in Fremont.

 Factory shutdown in Fremont

Tesla CEO Elon Musk has tackled the challenges of over-automation and has even hinted that reducing automation would actually increase their gross margins. Wall Street analysts Max Warburton and Toni Sacconaghi agree, saying that robots can not pump Tesla's Model 3 fast enough. They argue that attempting to "hyper-automate final assembly" is responsible for Tesla's inability to scale model 3 production fast enough and call the process too ambitious, risky and complicated.

Automation, however, continues to be a key tenant in Tesla's plan to build large-volume, low-cost electric cars for the masses. It is precisely this tension between innovation and competitive advantages that is the key to the brand and the future of Tesla.

Many in the industry doubt that Tesla will be able to reach the 5,000-week target next few months. Of course, production bottlenecks have so far delayed major customer deliveries (compared to last year's predictions, but not deep into Tesla's history), causing Musk to spend the entire night at the factory to gain direct control of the company take over production line in early April

"We were able to unlock some of the critical things that kept us from getting 2000 cars a week, but since then we've still done 2,000 cars a week," he said after The Guardian .

This is not the first Fremont factory shutdown. The assembly lines were discontinued in February and April of this year. Musk said the scheduled shutdowns should give the company time to upgrade to help it build 6,000 vehicles a week by the end of June.

Two sources confirmed Reuters In addition to the factory closure in Fremont, the teams working on the public assembly have already switched to 3 shifts, a timetable that maximizes production capacity and flexibility. Teams that focus on the outer shell of the car work in two 12-hour shifts.

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Tags: Elon Musk, Tesla, Tesla Factories, Tesla Fremont Factory, Tesla Model 3, Tesla Model 3 Production

About the Author

Carolyn Fortuna Carolyn Fortuna, Ph.D. is a writer, researcher and educator with a lifelong dedication to eco-justice. She has won prizes from the Anti-Defamation League, the International Literacy Association and the Leavy Foundation. She is a scholarship holder for digital media literacy and learns to disseminate sustainability issues. Please follow me on Twitter and Facebook and Google+

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