Telsa Model 3 production halted Company seeking to improve automation in Fremont

Tesla and SpaceX CEO Elon Musk speaks onstage at the South by Southwest festival. Musk decided to delete his Facebook account following the Cambridge Analytica scandal

Shares of Tesla Inc. traded lower Tuesday after reports that the company had shut down production of its Model 3 mass-market electric vehicle again to solve manufacturing bottlenecks.

The assembly line at the company's Fremont, ?California, plant will shut down as part of "planned downtime" to "improve automation", a Tesla spokesperson told dpa.

"Starting today at Giga and tomorrow at Fremont, we will be stopping for three to five days to do a comprehensive set of upgrades".

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Shares of the electric-car maker were up more than 2% ahead of Wednesday's opening bell. "This should set us up for Model 3 production of 3000 to 4000 per week next month".

Musk had admitted that "excessive automation" at the Tesla plant had contributed to what he calls "manufacturing hell" and had actually slowed down manufacturing of the crucial mass-market model.

Also, there is a report alleging that Tesla under-counted worker injuries, and an amended lawsuit originally filed previous year alleging CEO Musk misled investors about his Model 3 production. The announcement comes a day after Tesla temporarily suspended its Model 3 assembly line as the firm struggled to deliver on targets.

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Tesla Inc is aiming to produce 6,000 Model 3 units per week by the end of June to achieve its target of 5,000 units per week after accounting for a margin of error, Electrek reported, citing CEO Elon Musk's email to employees.

Tesla had previously targeted 2,500 Model 3s a week by the end of the first quarter and 5,000 by the end of the second quarter.

Shares of Tesla, which ended 1.2 percent lower on Tuesday, rose 1.4 percent in after-hours trading.

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