Thousands of EVs on hold at plant as Tesla faces logistical struggle: Report

Tesla, unlike other car makers, has its own distribution network and does not rely on third-party dealers.Thousands of new Tesla vehicles at the California plant have been put on containment hold, allegedly due to a missing part.
By : HT Auto Desk
| Updated on: 19 May 2021, 12:23 PM
File photo used for representational purpose. Note that these are Tesla vehicles at a port in Japan, and not at the company facility in California. (Bloomberg)
File photo used for representational purpose. Note that these are Tesla vehicles at a port in Japan, and not at the company facility in California. (Bloomberg)
File photo used for representational purpose. Note that these are Tesla vehicles at a port in Japan, and not at the company facility in California. (Bloomberg)
File photo used for representational purpose. Note that these are Tesla vehicles at a port in Japan, and not at the company facility in California.

More than 10,000 Tesla vehicles are out of assembly lines at the company's main manufacturing plant in California but reportedly have nowhere to go yet. This is because Tesla is allegedly, and again, suffering from logistical challenges that may compound delivery timelines to customers who have already placed orders for their vehicles.

Tesla, unlike other car makers, has its own distribution network and does not rely on third-party dealers. This has often resulted in challenges towards quarter ends in the past. But while the company did manage to sort out these issues in the recent past, a fresh obstacle is threatening to once again keep new Tesla models firmly parked.

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According to a report in Electrek, based on sources, thousands of new Tesla models have been put on what is called 'containment hold' and are parked at the company facility in Fairmount. While the company hasn't revealed the reason behind the hold, the report cites sources as saying that a particular part is not currently available. Minus it, quite obviously, the new cars cannot be shipped to customers in the waiting.

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Tesla CEO Elon Musk has previously claimed that his company has managed to sort out supply-chain issues to a significant extent. But this recent development is likely to come as a familiar headache.

It is learnt that some of these new models will be moved to delivery points because the missing part need not be incorporated at the factory and also because there may just not be enough space to accommodate the vehicles here.

Delay in deliveries have become rather common and many in the US have complained about it. The most recent was UFC fighter Beneil Dariush who asked Musk to get his Tesla delivered on live TV after a bout. (Full report here)

First Published Date: 19 May 2021, 12:23 PM IST
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