Tesla Partner Panasonic To Temporary Shutdown Its Nevada Gigafactory

by StartupWorld Staff         

America’s e-vehicle giant, Tesla Inc’s battery-partner Panasonic, has announced that it will temporarily shut down the operation of its Nevada-based Panasonic’s Gigafactory 1 in an effort to reduce the spread of the COVID-19 outbreak.

In an internal email, Panasonic mentioned that it would be sending nearly 3500 workers from the Tahoe-Reno Industrial Center to their home for 14 days starting early next week. According to The Reno Gazette Journal, Panasonic will pay 14 days of wages to all its employees, along with all the benefits during the shutdown.

According to Panasonic’s spokesperson Alberto Canal, the decision of shutting down has been taken to protect the health and well-being of every Panasonic employee. Panasonic’s Nevada factory will temporarily close its operation starting from early next week for 14 days. The shutting down will not affect employees’ pay. They will receive a full payment along with benefits for the 14 days shutdown.  

Tesla Partner Panasonic To Temporary Shutdown Its Nevada Gigafactory

Panasonic is taking all the precautionary measures to increase the cleanliness of the facility and also encouraged social distancing. It has also said that during the shutdown, it will undertake thorough cleaning.

The temporary shut down announcement by Panasonic has come just after a day Tesla declared that it would be ramping down its New York and California factory production while continuing the operation in its Nevada site where Tesla and Panasonic employees work together for the Tesla’s Model 3 batteries. It is said that Panasonic’s temporary closure would affect thousands of Tesla employees working on the same site.

On the other hand, Tesla CEO Elon Musk has declined to suspend operations in Nevada factory, whereas he declared that he would shut down its operation at its Fremont, Calif., factory from March 23rd. At Fremont, Calif. Factory, Tesla assembles Model S, Model 3, Model X, and presently working on Model Y. With this move, Tesla might face a shortage in the supply chain.


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