Tesla will reportedly halt production at its Berlin factory temporarily. The company is expected to resume operations in two weeks’ time.
Tesla will reportedly halt production at its Berlin factory for two weeks due to multiple problems. The report comes just three and a half months after Tesla’s German Gigafactory opened amid much fanfare in the presence of CEO Elon Musk and German Chancellor Olaf Scholz. On opening day, Tesla delivered to buyers the first batch of 30 Model Y cars that rolled out of the factory. The handover ceremony and associated festivities reportedly included loud music, with Musk even shaking a leg as the customers and their families cheered and clapped.
Initially announced in 2019, Tesla’s Gigafactory Berlin is situated about 20 miles southeast of central Berlin in Grünheide, Germany. Once fully operational, the factory is expected to produce batteries, battery packs and electric powertrains in addition to assembling the Model Y. It is one of the many global Tesla Gigafactories, including Giga Nevada (in Storey County, NV), Giga New York (in Buffalo, NY), Giga Shanghai (in China) and Giga Texas (in Austin, TX).
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According to a report from German newspaper Bild (via Fortune), Tesla has decided to halt production for two weeks at its Berlin Gigafactory due to at least three major problems. First is the long manufacturing time that is creating a problem for the company in terms of meeting the already-high demand for its Model Y crossover. In addition, the company is also struggling with a lack of skilled workers, preventing it from going full-steam ahead with production. Finally, Tesla workers are also being required to spend time fixing flaws on already-assembled cars, thereby increasing both costs and production times.
Tesla Is Making Changes To Mitigate The Problems
According to the report, the current pause in production will help Tesla carry out extensive modifications to the plant’s operations to help remedy some of the issues. The company reportedly believes that some of the steps it will put in place will enable production to resume later this month at a faster pace. Once the modifications are done, the plant is also expected to move from two shifts to three as part of the company’s plans to increase productivity. Tesla expects its new plans to significantly increase output in the coming months and help the factory attain its full potential.
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The report about Tesla’s decision to halt production at Gigafactory Berlin comes just over a week after Elon Musk described the Texas and German factories as “gigantic money furnaces” in interviews with a couple of YouTube channels. Tesla has also been having problems in Germany on the regulatory front, with the country’s road traffic agency recently forcing the company to recall 59,000 Model 3 sedans and Model Y crossovers due to a software glitch that could cause the failure of the eCall system.