Elon Musk confirms Tesla plant closure amid stock slide

Tesla CEO Elon Musk verified Thursday night that the automaker’s Fremont, Calif., factory experienced shut down for two times this week owing to a areas supply situation, but was again up and functioning.

Musk was responding to a Twitter follower inquiring for an update soon after Bloomberg claimed that the Product 3 creation line at the plant would be closed for two months.

Tesla shares fell 8% on Thursday and were being down in pre-marketplace investing Friday. Earlier this 7 days the inventory entered a bear industry, down 20% from recent highs.

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Musk failed to elaborate on the provide problem, or no matter if it was the full plant that experienced closed and reopened. Alongside with the Model 3, the facility produces the Product Y, Design S and Model X.

Tesla does not have a working media relations department that responds to requests for info.

Reuters claimed that acknowledged Tesla provider Samsung had to pause generation at its Texas manufacturing facility for quite a few times due to the recent storms that devastated the condition, but the electronics firm declined to comment on the Tesla predicament.

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Electrek reported that Musk explained to Tesla staff members in a letter that it took benefit of the shortage to “do machines updates and routine maintenance” and that it “will velocity up speedily to total Design 3/Y manufacturing in excess of the subsequent couple of times.

Musk also recommended that Model S and Model X creation was not currently underway as the manufacturing facility is being retooled to construct the just lately-unveiled updated versions of the motor vehicles.

“Design S/X output strains are almost completed with the retooling and will be aiming for max output following quarter. There is high demand from customers, so we are quickly heading to want to go again to two shifts. Remember to advise mates for recruiting,” Musk wrote in the take note, the written content of which has not been independently verified by FOX Business.