According to media reports, Tesla plans to halt production at its Berlin-Brandenburg Gigafactory for five days. Tesla stated that this is a routine operational procedure, with nothing unusual.
It is reported that Tesla will suspend production at the German factory on June 7th, 14th, 17th, 27th, and 28th. Tesla declared that production in the automotive and powertrain sectors will be paused on these dates, but the casting, plasma processing, and battery manufacturing areas will continue to operate normally. Tesla informed factory employees that the downtime will be used to "optimize factory processes" and "prepare employees for future challenges."
Tesla is also facing a decline in demand for electric vehicles in China. During late spring and early summer this year, Tesla plans several production pauses. In early May, Tesla suspended production at the German factory for four days. At that time, Tesla also stated that the shutdown was to optimize production processes. Currently, the Model Y is the only electric vehicle produced at Tesla's German factory.
In the first quarter of 2024, Tesla's sales declined for the first time in four years. With thousands of unsold new cars in inventory, Tesla had to use the Neuhardenberg former military airport, about an hour's drive from the Berlin-Brandenburg Gigafactory, for storage.
The recent production halt at the Berlin-Brandenburg Gigafactory may contrast with Tesla's early plans for the German factory. On one hand, it is said that Tesla aims to double the annual production capacity of the German factory to 1 million vehicles and recently received approval for factory expansion. On the other hand, the company seems to be grappling with overcapacity.
It is noteworthy that the upcoming production halt at the Berlin-Brandenburg Gigafactory will not financially affect employees. They will enjoy paid leave days, while employees in non-production areas will receive additional pay for each day worked.
However, a cloud still looms over some employees at Tesla's German factory. Reports indicate that Tesla aims to reduce the number of employees by several hundred through voluntary departures rather than layoffs. Previously, Tesla announced plans to cut 10% of its workforce globally.
