• Tesla will be suspending operations on one of its factories in the U.S.
  • It'll be removing many of its staff in the Nevada gigafactory due to the COVID-19 outbreak
  • Tesla needs to keep up with its production to meet its deliveries that it also have delayed due to the coronavirus

Tesla has recently announced that it will cut many staff members of its factory in Storey County, Nevada. The Nevada factory is known for making parts for the company’s popular sedan, the Model 3. The COVID-19 outbreak is noted to be the reason for the factory losing staff.

Tesla’s Austin Osborne confirmed that the Nevada factory would lose around 75 percent of its staff, CNBC reported. The remaining staff members will handle the operations of the company and will continue production until the temporary suspension of its operations. The parts made in this factory are battery packs and electric motors for the Model 3 sedans.

The move follows Panasonic pulling out its staff prior to the 14-day operation suspension. As of now, Tesla is looking to reopen its New York factory as “soon as humanly possible.” The COVID-19 outbreak has definitely affected the company’s production line so far.

As for the coronavirus’ effects on the Tesla production line, the company’s shareholder trial has been postponed and its stocks have tanked by 17 percent. The company’s stocks took a hit after the company had to delay its February deliveries of Model 3 sedans due to the virus outbreak and many companies taking precautions to curb its spread.

While Tesla is slowing down production, it is still leagues ahead of its rivals. Tesla is known to make the most affordable and most convenient electric car due to its price, features, and other services offered to Tesla vehicles throughout the company’s main market regions.

For now, we’ll have to wait and see how Tesla will recover from closing down some of its factories. The company needs the production line to keep moving forward and deliver to its massive list of customers aiming to own one of their vehicles.

Brazilian President Jair Bolsonaro is hoping that electric carmaker Tesla will open a factory in his country
Brazilian President Jair Bolsonaro is hoping that electric carmaker Tesla will open a factory in his country AFP / Kenzo TRIBOUILLARD