On Monday, TeslaMag reported that the Tesla (NASDAQ: TSLA) plant near Berlin will take a two-week break from July 11. According to German media, Tesla management believes that the Berlin plant is too slow and considers it necessary to speed up production processes in order to meet the goal of producing 500,000 Model Y vehicles per year instead of the current 50,000. It is for this purpose that the plant will be stopped for two weeks, so that the company has time to rebuild work processes. The company produced 1,000 Model Ys at the plant for at least one week last month.
“After the work of the plant is resumed, the plant will start working in three shifts, however, it is interesting that quite recently the founder of Tesla, Elon Musk, announced the need to reduce the number of personnel involved in the production of cars. Whether the planned stoppage of production in Berlin will help the corporation to fulfill the ambitious plans of management – time will tell, ” comments Natalia Milchakova, a leading analyst at Freedom Finance.
The electric car maker will also shut down most production at its Model Y assembly line in Shanghai for the first two weeks of July, and then the Model 3 line for 20 days starting July 18. This was reported by Bloomberg last month. Work to upgrade the plant to increase production of both vehicles is expected to be completed by early August, people familiar with the matter said.
Yesterday it became known that Tesla delivered 17.9% fewer electric vehicles in the second quarter compared to the previous one. The company delivered 254,695 vehicles from April to June, up from 310,048 vehicles in the previous quarter. Tesla’s performance was hit last quarter by the Shanghai lockdown due to the COVID-19 outbreak. The company has made great efforts to reopen its plant there and keep it running.
The shutdown of the Shanghai plant and the fight against a build-up of new factories have contributed to Tesla’s share drop by 38% over the past three months.
Tesla scheduled its quarterly earnings report for July 20th.