Tesla Inc (NASDAQ:TSLA) has announced that it will temporarily halt activity at its assembly facility in Fremont, California for about a week in order to allow preparations for the production of mass-market Model 3 car. The electric automaker plans to begin production of the high-volume model in July this year. A spokesperson for Tesla said the temporary shutdown would enable the firm to undertake general maintenance as well as increase capacity at its paint shop.
“This will allow Tesla to begin Model 3 production later this year as planned and enable us to start the ramp towards 500,000 vehicles annually in 2018,” the spokesperson said.
Production days
The temporary shutdown will not affect Tesla with regards to production or delivery figures in the first quarter. This is because the electric automaker has compensated for it by adding production days.
Sources have also revealed that test-building for the Model 3 mass market car will begin on February 20. Elon Musk, the chief executive officer of Tesla, last year told investors and over 370,000 customers who had already paid deposits for the Model 3 that building of the mass market car would begin in mid-2017. Analysts and suppliers have reacted skeptically since Tesla has had a history of missing ambitious production targets.
Fourth quarter
Should the electric automaker succeed in the pilot phase of Model 3’s production, the development is likely to be shared with shareholders as it releases its fourth quarter results on February 22. Currently, there is no information on the number of vehicles that Tesla will build this February though sources say it will likely be a small number that will just be adequate for testing of the quality of the car parts and the assembly system. Information on the company’s production schedule is also not available.
The Tesla Model 3 which is expected to cost about $35,000 before subsidies will change the fortunes of the electric car maker as it currently caters to the luxury segment. Since its initial public offering, the company has never had a profitable year.
On Friday shares of Tesla Inc edged up slightly by 0.01 percent to close the day at $269.23.