No Chips, Means A Production Dip. Tesla’s Fremont, California Factory That Assembles Model 3s Has Temporarily Shut Down.

FILE - This Tuesday, May 12, 2020, file photo shows the Tesla plant, in Fremont, Calif. Some Tesla workers and labor activists say the company is threatening to fire employees who haven’t returned to the company’s California factory since it reopened because they're afraid of catching the coronavirus. (AP Photo/Ben Margot, File)

News out of Northern California Thursday isn’t exactly something that is welcomed for anyone on a wait list for a new Tesla Model 3.

The company has temporary stopped production of their popular car at their assembly plant in Fremont.  Bloomberg was first to report on this story, and Tesla executives have not commented on it and Elon Musk has not tweeted on it.

Back in January, Tesla did hint that they were not ruling out an impact on their assembly lines because of a  global semiconductor shortage the world was facing. That may or may not be while things will shut down at their plants, which started Monday and is expected to continue for two weeks until March 7 based on what some of their workers were told.

There could be residual effects that affect Tesla from that brutal winter story that hit Texas last week.  Samsung said they had to suspend the production of the chips needed in Tesla’s cars because of the power outages. Samsung never said officially Tesla would be affected, but they did say in 2019 that they manufacture chips for Tesla in Texas.

Every year the Fremont plant cranks out about half a million Model 3s and Model Ys in total.

With a new factory opening in China, Tesla is hoping to up their sales by at least 50% this year.

One thing is for certain; the demand for electric cars has never been higher and it’s growing by the day.  Having a two-week shutdown of a factory is never a good thing when you try to supply that demand.

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