Tesla (TSLA) Stuck as It Can't Deliver 10,000+ Cars From Its Fremont Factory Amid Supply Chain Issues - Report

May 18, 2021 12:41 PM EDT

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Tesla (NASDAQ: TSLA) reportedly has over 10,000 cars coming out of its Fremont factory with a "containment hold" label, meaning they can’t be delivered.

Electrek reports that the company is unable to deliver over 10,000 units as a crucial part is missing amid supply chain issues. This is likely to result in a frantic end of Q2 when the company pushes to deliver as many vehicles as possible to keep its inventories low.

It can be that up to 20,000 units are affected by this problem, Electrek reports.

“Worst case scenario, it actually pushes some deliveries into the third quarter and negatively affects Tesla’s Q2 results,” says Electrek’s Fred Lambert.

In February, Musk sent a message to his staff to say that the company is “experiencing some parts supply issues, so took the opportunity to bring Fremont production down for a few days to do equipment upgrades and maintenance.”

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