Just as Cathie Wood at ARK Invest was buying the dip in Tesla earlier this week, shares of the electric car company are down again, this time due to a temporary halt in production at its California factory.
Sources told Bloomberg that workers at the Model 3 production line in Fremont said production would be down from Feb. 22 until Mar. 7. During the down period, employees would be paid between Feb. 22 and Feb. 23 and not paid for Feb. 28, March 1, 2, and 3. Many employees were advised to use vacation time during the downtime.
Production outages for automakers happen from time to time. Tesla said in its latest Form 10-K that "increased demand for personal electronics has created a shortfall of microchip supply, and it is yet unknown how we may be impacted."
"For example, a global shortage of microchips has been reported since early 2021, and the impact to us is yet unknown. The unavailability of any component or supplier could result in production delays, idle manufacturing facilities...," the filing read.
Is this a thinly-veiled attempt at admitting Tesla has joined the likes of GM, Nissan and Ford who have suspended some production due to semi shortages?
Shares of Tesla in the premarket are trading down between $727 - $733.
The Palo Alto, California-based electric carmaker didn't respond to Bloomberg about the production halt reasons.