Tesla has reportedly told workers that they are going to halt some production at its factory in Palo Alto, California.
Citing an inside source with knowledge of the matter, Bloomberg reports that workers at the Model 3 production line were told that their post would be down from February 22 to March 7 but some of them were back at the facility on February 24.
Tesla is currently facing problems with its supply chain due to delays at ports and extreme weather conditions affecting ground transportation, according to another unnamed source.
The EV maker said last month that its operations might be affected temporarily by the global semiconductor shortage and capacity issues at ports.
Samsung Electronics said last week that it had suspended operations at its factory in Texas as a winter storm caused power outages, Reuters reports. Samsung has declined to reveal its customers for the factory, but in 2019, Tesla said that its self-driving chips are made from Samsung in Texas.
It’s unclear at this point how much volume -and revenue- Tesla would lose with this temporary production stop. The company’s California factory has an estimated annual capacity of 600,000 vehicles.
Tesla recently cut prices for the Model 3 and Model Y, with the sedan now starting from $36,990 and the crossover from $39,990 (although that was quickly taken off-menu from the carmaker’s website).
The company’s shares were also down by 6.77 percent as of this writing on February 25.
