While the possibility of Tesla (NASDAQ: TSLA) Building a new factory in Texas is gaining ground, the automaker also focuses on its current facilities in the United States in Fremont, California. Electrek.co, a website that follows the electric transportation industry, reports that in addition to the company being in the process of updating the factory, it is also likely to temporarily close the factory, possibly in late July, as prepares to open a new assembly line there.
According to Electrek, the focus of the upgrades will be to increase Model Y’s production capacity, an expected move considering the website reported (based on a leaked email) in June that Elon Musk had told employees that Model Y is “the highest priority”. for both production and manufacturing engineering. “
Given that Tesla has not provided any direct comment on the plant shutdown, it is not entirely clear why it is choosing to upgrade the facility now, and why it did not choose to do so when it had to suspend operations in March and April during the lockout. of state coronavirus. Tesla may have intended to complete the updates at the time, but was unable to due to the inability to obtain the necessary equipment and supplies.
However, it is curious that the company is planning the updates now, considering how the pandemic may be impacting in other ways. Electrek reported Tuesday that it had “obtained internal data from Tesla showing that the automaker has had more than 1,550 employees” affected “by the COVID-19 cases.”
Should Tesla shut down the Fremont factory for a few days or a week, investors won’t have to search for a red flag. However, if the shutdown extends, it may suggest that there are concerns that go beyond plant upgrades.