Tesla Inc. (TSLA) is temporarily suspending production of its Model 3 sedan for the second time in three months.
The electric automaker told employees at its factory in Fremont, California that the shutdown will last four to five days, reported BuzzFeed. Workers were not given any prior warning about the pause and have been urged to take vacation or stay home without pay, although a small number of them were offered work elsewhere in the factory.
A Tesla spokesperson told BuzzFeed that the assembly line has been suspended in order to “improve automation.” When journalists asked for a more detailed explanation, Tesla referred them to the same statement it issued when it last shut down Model 3 production for four days in February. In that particular statement, the company said that planned periods of downtime are “not unusual” and are required to improve automation and address bottlenecks. (See also: Tesla Suspended Model 3 Production for a Week in Feb: Report.)
Tesla’s shares were down 1.69% in pre-market trading.
News of another production shutdown came one week after CEO Elon Musk said that the company’s manufacturing issues were finally being resolved. During an interview with CBS, Musk claimed that Tesla should be able to continue producing 2,000 Model 3 sedans per week and will probably make three or four times as many of the cars in the second quarter.
Earlier this month, Tesla informed investors that it had once again missed its quarterly production targets. During the last week of the quarter, the company manufactured 2,020 Model 3s, falling short of its targeted weekly output of 2,500. However, Tesla also said it was confident about meeting its goal of producing 5,000 Model 3 sedans per week by the end of the second quarter. (See also: Tesla CEO Misled Investors, Says Shareholder Lawsuit.)
Tesla is under huge pressure to speed up Model 3 production. Customers are queuing up to buy the car and the company desperately needs to sell them after spending billions of dollars preparing for its rollout. Analysts have speculated in recent weeks that a failure to meet its targets once again could force Tesla to raise more capital from investors. (See also: Tesla CEO Says "Place Your Bets" in Challenge to Bears.)