Tesla Model 3 electric vehicle production halted

Tesla and SpaceX CEO Elon Musk speaks onstage at the South by Southwest festival. Musk decided to delete his Facebook account following the Cambridge Analytica scandal

The tech billionaire explained that the recent suspension of production at Tesla's Fremont and Nevada sites were necessary to complete a "comprehensive set of upgrades" that should eventually permit the electric automaker to finally reach and even exceed its lofty Model 3 manufacturing goals.

(NASDAQ:TSLA) has suspended its Model 3 assembly line in what the company was a planned production halt, the EV continues facing major production problems ramping up its most important auto.

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.

Automotive sectors analysts dispute Mr. Musk's analysis, which hinges on a rapid rise in production of the Model 3 sedan.

The auto maker said the halt - the second since February - was to improve automation and systematically address bottlenecks to increase production, a regular move by vehicle companies. "This means that we will be adding another shift to general assembly, body and paint", Musk wrote in an internal email obtained by Electrek. Musk describes the contractor situation within Tesla as being like a "Russian nesting doll" and that some perform "worse than a drunken sloth".




Musk has been under considerable pressure lately as delays continue to plague the production of the Tesla Model 3 sedan - a vehicle the company's successful future rests on.

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.

The CEO also signalled Tesla is planning another pause in Model 3 output next month after stopping for three to five days this week to make updates to its factories in California and Nevada.

Tesla's Fremont factory lines have been running on two shifts. And then, once further work is done on the line in May, he added that manufacturing 6,000 Model 3s per week will become the new requirement. "It matters", Musk said in Tuesday's email.

Tesla's fortunes ride on boosting Model 3 output.

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