Tesla suspending production at 2 sites amid COVID-19 threat

Tesla Inc (NASDAQ:TSLA) will temporarily suspend production at two of its US factories due to concerns about COVID-19 and the exposure of its staff to the global pandemic.

The company said in an operational update on Thursday it will shut down manufacturing at its electric vehicle (EV) plant in Fremont, California, from end of day on March 23, while continuing to perform basic operations to support its vehicle and energy service operations and charging infrastructure.

Tesla will also halt production at its Gigafactory 2 production base in Buffalo, New York, where it is making solar photovoltaic (PV) cells and modules. This plant will only remain operational for parts and supplies necessary for service, infrastructure and critical supply chains.

“Despite taking all known health precautions, continued operations in certain locations has caused challenges for our employees, their families and our suppliers,” Tesla said in the press release.

Operations at Tesla’s other facilities, including the Tesla EV Gigafactory in Sparks, Nevada, will continue. The manufacturer is implementing a “touchless deliveries” plan at many of its sites in order to reduce the potential for spreading the infectious disease.

Tesla noted its liquidity level is sufficient “to successfully navigate an extended period of uncertainty.” At end-2019, the company had USD 6.3 billion (EUR 5.9m) of cash on hand that was subsequently increased through a USD-2.3-billion fundraising.

(USD 1.0 = EUR 0.934)

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