- Tesla has temporarily suspended its Model 3 assembly line while seeking to “improve automation and systematically address bottlenecks.”
- Shares were down 2.51% early Tuesday.
- Model 3 production worries are only part of Tesla’s problems right now.
- Watch Tesla trade in real time.
Tesla was trading lower by 2.51% at $283.91 Tuesday after the electric-car maker said it had temporarily suspended its Model 3 assembly line to “improve automation and systematically address bottlenecks.”
The shutdown, first reported by BuzzFeed, is the latest in a series of setbacks for the company.
Earlier in April, Tesla announced disappointing Model 3 production numbers but pledged to reach its target for 5,000 cars a week by the end of the second quarter. CEO Elon Musk recently told “CBS This Morning” that excessive automation of the Model 3 “was a mistake.” He later tweeted that his company would be profitable before the end of the year.
But Model 3 production problems aren’t the only issues Tesla has to deal with right now.
There’s an ongoing government investigation into a fatal Model X crash in California, and the company’s bonds have come under pressure. Additionally, a report from the Center for Investigative Reporting out Monday said Tesla deliberately concealed serious injuries from public reports to boost its safety statistics.
Shares of Tesla are down 8.8% this year, and recent selling has pushed them below the key $300 level.