Tesla Said To Be Pausing Giga Berlin Production For 2 Weeks: What's Going On?

Tesla Inc TSLA will reportedly "interrupt" production at its Giga Berlin factory in Germany next week, as it looks to iron out speed and quality issues to achieve higher efficiency and meet surging demand for its electric vehicles.

What Happened: According to the German tabloid newspaper Bild, the Elon Musk-led company will temporarily shutter its factory in Brandenburg for two weeks, starting next Monday, to upgrade the facility and add another shift.

The current production rate of 1,000 Model Ys per week is also well short of Tesla's aim to produce 500,000 EVs a year at Giga Berlin, Bild reported on Monday, without citing any concise sources.

The German newspaper, citing Tesla employees, said a third shift would be added once production resumes and the EV maker could start manufacturing the drive in a neighboring hall.

Why It Matters: The news of the factory revamp comes on the heels of Musk's revelation that Giga Texas and Giga Berlin are losing “billions of dollars” with “tonnes of expenses and hardly any output.”

Tesla has also reportedly canceled some Model Y deliveries in Germany, as its Brandenburg factory deals with manufacturing defects while aiming to ramp up production.

Giga Berlin was opened on March 22, two weeks before Giga Texas. Production at the two factories has ramped up slower than expected due to supply chain disruptions in China.

The two plants are expected to boost Tesla's annual output by one million cars. 

Photo courtesy: Tesla