Tesla to shut down factory in Fremont for upgrades: Report

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Telsa may be shutting down operations at its Fremont, California, factory for upgrades by the end of July, according to a Wednesday report from industry news website Electrek.co.

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When Tesla was forced to close Fremont factory, which has since reopened, in March because of local lockdown restrictions, Electrek initially reported that the electric automaker might use the shutdown to focus on upgrades that would improve production.

Tesla's upgrade could include a tent-like structure over a new assembly line, and the automaker plans "to do something similar for Model Y and deploy some production capacity under a sprung structure to go in operation when they can reopen the plant," a source told Electrek.

Some workers were told that the reported factory shutdown could come at the end of July, the outlet reported. Tesla did not immediately respond to an inquiry from FOX Business.

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The automaker built a similar tent-like structure for a Model 3 assembly line in 2018 at the Fremont facility. Tesla founder Elon Musk said the tent structures save costs and increase productivity.

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"Needed another general assembly line to reach 5k/week Model 3 production," Musk tweeted at the time. "A new building was impossible, so we built a giant tent in [two] weeks. Tesla team kfa!! Gah, love them so much."

Before July 4, the Fremont factory was producing 250 vehicles per shift, Electrek reported.

At the same time, there have also been reports of a spike in coronavirus cases since the Fremont facility reopened despite pleas from local officials to remain closed.

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More than 130 Tesla employees, a dozen contractors and temporary employees, have tested positive for COVID-19. Additionally, more than 1,550 workers at the factory of more than 10,000 have been exposed to the virus, Electrek reported Tuesday citing internal documents from the automaker's headquarters.

Musk threatened to sue the county and move Tesla's headquarters if local officials would not allow him to reopen the Fremont factory for production. The automaker delivered more than 90,500 vehicles in the second quarter of 2020.

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