Tesla Inc (NASDAQ:TSLA) announced recently that it’s temporarily closing its famous Model 3 assembly plant for about five days as part of the company’s strategy to update its automation and address its bottlenecks that cause delays in the production rates of Model 3 sedan. The affected employees have been advised to take the vacation days or stay at home without the pay according to BuzzFeed.
The company has now paused the production of its Model 3 twice now within the last three months as the firm continues to tackle the challenges it’s facing with its new model car. In late February, Tesla temporarily shut down its production assembly line of Model 3 at its California plant.
Tesla’s previous pause was reportedly meant to accelerate its output. Similarly, before the first pause, Bloomberg reported that the workers at the company’s factory had been advised to take more time at the assembly so as to increase the output to beat out its rivals in the market.
Tesla has been experiencing delays in the production of its new sedan for several months and the company is currently working out different mechanisms to accelerate its preplanned production targets. The company plans to produce more than 2,500 vehicles each week by the end of its second quarter of the year.
However, its excessive reliance on the robotic assembly line is currently facing setbacks in attained the company’s set targets. The company now blames itself for underestimating the human efforts. Continuous delays and interruptions have led to dissatisfactions among the company’s clients and in turn, affected the firm’s cash flows and shares.
The workers at the suspended production were surprised by the news when they learned that the company could even be planning for more downtime in the coming several months. According to several industry analysts, Tesla took shortcuts in testing the new production assembly line as it strived to reach the market faster but it’s now reaping the consequences. Generally, car manufacturers usually slow down the production for their new models to tackle the predictable manufacturing problems before increasing production targets.