Tesla Fremont Factory Suffers Fire Damage, No Injuries Reported

A small fire broke out at Tesla Inc.’s TSLA factory in Fremont late Thursday afternoon but was contained by firefighters and no injuries were reported.

What Happened: The Fremont Fire Department said it responded to a “working fire” at the factory and added that no Tesla personnel or firefighters were injured.

See also: How to Invest in Tesla Stock

The fire occurred in an area of the factory property that was under construction and was contained to a vehicle manufacturing stamping machine. The cause of the “deep-seated” fire was molten aluminum and hydraulic fluid, according to the fire department.

Why It Matters: The Fremont factory is Tesla’s primary vehicle assembly plant in the U.S. and employs about 10,000 people. It produces the Model 3, Model S, Model X and Model Y electric vehicles.  

Tesla had temporarily halted production at the factory for two days in late February due to a parts shortage.

After having to temporarily shut down the Fremont factory last year to the COVID-19 pandemic last year, Tesla CEO Elon Musk complained of the factory’s location and also talked about new factory locations, specifically in Texas. The company is now building a second Gigafactory in Austin, Texas, which will produce the Cybertruck.

Price Action: Tesla shares closed 4.7% higher on Thursday at $699.60.

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