Tesla stops Model 3 production temporarily amid financial concerns

Tesla stops Model 3 production temporarily amid financial concerns

"As part of the drive towards 6k, all Model 3 production at Fremont will move to 24/7 operations".

Tesla Inc. (TSLA) will soon begin operating its assembly plant in California 24 hours a day, seven days a week to help meet its so far hard to achieve Model 3 sedan production goals.

The increased production rate is required to reach the publicly announced target of 5,000 cars per week with a realistic margin of error, the email said.

In fact, the shutdown may be being used to reduce automation on the Model 3 line using more human production and fewer robots or conveyor belts, as Tesla CEO Elon Musk alluded to in a Tweet on Sunday.

The upgrades Tesla are making while idling the plants this week "should set us up for Model 3 production of 3000 to 4000 per week next month", he wrote. The company announced Monday that it would be pausing production of the electric auto once again for "planned downtime" while it works to improve automation.

To add to the extra shifts, Tesla has chose to hire 400 workers a week for several weeks.

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Model 3 production fell short of the weekly target of 2,500 at the end of the first quarter and a number of Wall Street analysts say they do not believe it will succeed in producing 5,000 Model 3s per week in the second quarter, as Musk has promised. Upon seeing the conditions that Musk was putting himself through, Sullins opened up a GoFundMe campaign to get it swapped out for something more suited to the strenuous work the CEO has been putting in.

FILE PHOTO: First production model of Tesla Model 3 out the assembly line in Fremont, California, U.S.is seen in this undated handout photo from Tesla Motors obtained by Reuters July 10, 2017.

"We will be stopping for three to five days to do a comprehensive set of upgrades".

The Model 3 is key to the company's efforts to generate revenue to repay investors and push development of other electric vehicles. But Autopacific analyst Dave Sullivan says manufacturing doesn't normally stop for days, especially nine months after production began.

Musk, who has said his automaker will be profitable and cash-flow positive in the third and fourth quarters and won't need another capital raise this year, also outlined cost-saving measures in his email.

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