Tesla To Temporarily Suspend Production At Fremont On March 23

Tesla released an operational update that says it will conduct an orderly shutdown at its Fremont factory and New York factory.

Tesla Put California On The Automotive Map In U.S.

Mark Kane

By: Mark Kane

Mar 19, 2020 at 5:31pm ET

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Tesla announced an official operation update, related to the coronavirus outbreak in the U.S. The company intends to temporarily suspend production in Fremont and in New York.

It will not happen immediately to allow "an orderly shutdown":

Tesla Factory in Fremont, from the end of day March 23
"Basic operations will continue in order to support our vehicle and energy service operations and charging infrastructure, as directed by the local, state and federal authorities"
Tesla Gigafactory 2 in New York
"except for those parts and supplies necessary for service, infrastructure and critical supply chains"

Other facilities in the U.S., including Tesla Gigafactory 3 in Nevada will continue to function. The Supercharging network also will remain fully operational.

"In the past few days, we have met with local, state and federal officials. We have followed and are continuing to follow all legal directions and safety guidelines with respect to the operations of our facilities, and have honored the Federal Government’s direction to continue operating. Despite taking all known health precautions, continued operations in certain locations has caused challenges for our employees, their families and our suppliers.

As such, we have decided to temporarily suspend production at our factory in Fremont, from end of day March 23, which will allow an orderly shutdown. Basic operations will continue in order to support our vehicle and energy service operations and charging infrastructure, as directed by the local, state and federal authorities. Our factory in New York will temporarily suspend production as well, except for those parts and supplies necessary for service, infrastructure and critical supply chains. Operations of our others facilities will continue, including Nevada and our service and Supercharging network."

"In many locations, we are in the process of implementing “touchless deliveries” so customers can continue to take delivery of their vehicle in a seamless and safe way. Due to the unique over-the-air connectivity of our vehicles, customers are able to unlock their new cars at a delivery parking lot via the Tesla App, sign any remaining relevant paperwork that has been placed in their car, and return that paperwork to an on-site drop-off location prior to leaving. This method provides additional convenience and comfort. "

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Liquidity

For those interested in the financial performance of the company that is required to suspend the majority of its production, Tesla explains how much cash or equivalent is available:

at the end of Q4 2019 was $6.3 billion, before our recent $2.3 billion capital raise
about $3 billion of available credit lines (all types) at the end of Q4 2019

"Our cash position at the end of Q4 2019 was $6.3B before our recent $2.3B capital raise. We believe this level of liquidity is sufficient to successfully navigate an extended period of uncertainty. At the end of Q4 2019, we had available credit lines worth approximately $3B including working capital lines for all regions as well as financing for the expansion of our Shanghai factory."

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Mar 19,2020

Tesla Operational Update

PALO ALTO, Calif., March 19, 2020 (GLOBE NEWSWIRE) -- In the past few days, we have met with local, state and federal officials. We have followed and are continuing to follow all legal directions and safety guidelines with respect to the operations of our facilities, and have honored the Federal Government’s direction to continue operating. Despite taking all known health precautions, continued operations in certain locations has caused challenges for our employees, their families and our suppliers.

As such, we have decided to temporarily suspend production at our factory in Fremont, from end of day March 23, which will allow an orderly shutdown. Basic operations will continue in order to support our vehicle and energy service operations and charging infrastructure, as directed by the local, state and federal authorities. Our factory in New York will temporarily suspend production as well, except for those parts and supplies necessary for service, infrastructure and critical supply chains. Operations of our others facilities will continue, including Nevada and our service and Supercharging network.

In many locations, we are in the process of implementing “touchless deliveries” so customers can continue to take delivery of their vehicle in a seamless and safe way. Due to the unique over-the-air connectivity of our vehicles, customers are able to unlock their new cars at a delivery parking lot via the Tesla App, sign any remaining relevant paperwork that has been placed in their car, and return that paperwork to an on-site drop-off location prior to leaving. This method provides additional convenience and comfort.

Our cash position at the end of Q4 2019 was $6.3B before our recent $2.3B capital raise. We believe this level of liquidity is sufficient to successfully navigate an extended period of uncertainty. At the end of Q4 2019, we had available credit lines worth approximately $3B including working capital lines for all regions as well as financing for the expansion of our Shanghai factory.

Forward-Looking Statements

Certain statements herein, including statements regarding the extent and timing of our production and other operations, and our liquidity, are “forward-looking statements” that are subject to risks and uncertainties. These forward-looking statements are based on management’s current expectations. Various important factors could cause actual results to differ materially, including the risks identified in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2019. Tesla disclaims any obligation to update this information.

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Tesla To Temporarily Suspend Production At Fremont On March 23

Tesla released an operational update that says it will conduct an orderly shutdown at its Fremont factory and New York factory.

See also

Touchless car deliveries

Liquidity

Tesla Operational Update