Tesla Chief Executive Officer Elon Musk said the electric vehicle company’s Fremont, California plant shut down for two days this week due to “parts shortages” and had reopened on Wednesday.
Shares of Tesla fell 8% during the day after Bloomberg reported that production of Tesla’s less expensive sedan, the Model 3, had been temporarily suspended, raising questions about whether it had enough supplies to keep the assembly line moving.
Several automakers, including General Motors Co, Volkswagen AG, and Ford Motor Co, are hit by the shortage of chips, forcing them to scale down production.
“Fremont shut down for two days (parts shortages) & restarted yesterday,” Musk said in a Twitter posting.
A person with knowledge of the situation told Reuters that at least some workers had been told they could take off Wednesday and Thursday, while another person said some employee parking lots appeared to have fewer people than usual on Thursday.
Electric vehicle news source Electrek quoted Musk as telling employees that production of Model 3 and the Model Y small SUV would speed up to full production over the next few days.
“We are experiencing some parts supply issues, so we took the opportunity to bring Fremont down for a few days to do equipment upgrades and maintenance,” Musk said in an employee email, according to Electrek.
Musk also said that the company was scaling up production of its more expensive Model S and Model X lines, which would soon go back to two shifts, he said, according to Electrek.
The company could not be immediately reached for comment.
Tesla said last month that it might face a temporary impact from a global semiconductor shortage and logistics disruptions at ports.
“This is an industrywide problem rather than anything Tesla-specific. But this episode provides a very useful reminder that EV manufacturing is subject to periodic supply chain bottlenecks, whether related to chips, or batteries, or other components,” Raymond James analyst Pavel Molchanov said by email.