Tesla To Shut Down Fremont Factory For Scheduled Upgrades

Tesla Inc's TSLA Fremont factory will be shut down temporarily later this month for upgrades to vehicle assembly lines. An expansion at the Fremont factory was recently reported, and this shutdown will most likely make that expansion operation.

This isn't the first time the Fremont factory has shut down for upgrades. A similar shutdown was seen during the Model 3 ramp-up, while Tesla struggled to produce enough cars to meet demand. This shutdown comes at a good time, as California sees surging cases of COVID-19, Tesla may be forced to close the factory once again.

Why It's Important: During the last pandemic induced shutdown, Tesla used the time to make upgrades to manufacturing lines. Tesla must use its time wisely, as Fremont is only one of two factories producing Tesla's vehicles worldwide.

Earlier today, Elon Musk shared a render of the next Gigafactory being constructed in Berlin, which is expected to produce Model Y and eventually Model 3.

Benzinga's Take: This is great news for Tesla. It shows they are ready to increase production of the popular Model Y, and sell even more vehicles. Tesla recently reduced the price of the Model Y, which should improve demand.

As Tesla builds more factories across the globe, including a potential Cybertruck factory in Texas, these planned factory upgrades will not slow the company as much as they may today.

Photo courtesy of Tesla.