Part of the production at Tesla’s large car plant in Fremont, California has been temporarily shut down. This is a production line for the Tesla Model 3 that is being built there.
Tesla has informed employees to that assembly line that production has suspended until 7 March. The annual production capacity at the Fremont plant is 500,000 Model 3 and Model Y.
The production freeze may be due to a lack of chips, which is currently affecting the entire automotive industry. Tesla had already warned that this might have consequences. Other major car manufacturers such as General Motors (GM), Volkswagen and Toyota Motor have also temporarily suspended production due to the chip shortage.
American president Joe Biden said on Wednesday that he wants to spend 37 billion dollars to stimulate the chip sector in the United States in order to reduce the chip deficit. The shortage of semiconductors in the automotive industry has caused unrest in the White House and among members of Congress. Biden now wants to quickly tackle the problem in collaboration with chip companies.
The coronavirus pandemic has made it difficult for chip companies to supply enough chips to car manufacturers. According to experts, the problems are caused by the strong demand for chips for smartphones, laptops and game consoles, for example, because many people have to stay at home because of the virus outbreak.