Parts Shortages Compel Tesla Inc (NASDAQ:TSLA) To Halt Operations For Two Days

Tesla Inc (NASDAQ:TSLA) is known to achieve production capacity for both Model 3s and Model Ys combined on hits a figure of 500,000 annually. Chief Executive Officer Elon Musk has explained the recent halt in operations. The top executive says they were compelled to stop operations for a short while due to a shortage of parts. It was a business halt that continued for two consecutive days.

Worker’s take two days off

A person well conversant with the matter disclosed that the company had communicated to its employees to take two days off. Another person also disclosed that the employees’ parking lots seemed to have very few people in the two days.

Musk says that the shortages in parts supply issues should have been anticipated when it comes to electric vehicles’ manufacture. The official said they continued working even in the shutdown course, focusing mainly on equipment upgrades and maintenance activities.

The company is also working towards the expansion of its more expensive Model S and Model X lines.

Disruptions are seen as a norm in EV production

The previous week, the company announced that it anticipated logistics disruptions at ports and global semiconductor shortages. Musk urged people to stop looking at the matter at hand as something particular on Tesla alone. The leader asserted that the challenge wasn’t Tesla specific and would use the halts to do more progressive activities.

Musk also calls upon everyone to recognize that EV manufacturing remains prone to periodic supply chain bottlenecks. He thinks that the shortages could touch on many different aspects, including batteries, chips, or other components.

Samsung Electronics is the provider that has been serving Tesla with chips useful at enabling self-driving capabilities. The business has disclosed a temporary shutdown in operations at its Texas factory, outlining that it was necessary because the winter storm tampered with its power supply.

Tesla hasn’t yet given a statement outlying how much loss is experienced due to the production halt.

Another significant development in the company’s operations has to do with price reductions. The company reveals how it cut down the price of Model 3 and the Model Y, which happen to be part of its cheaper variants.