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Semiconductor Shortage and Tesla Model 3 Production Collide

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The ongoing shortage in semiconductors has appeared to have hit Tesla  (TSLA) - Get Tesla Inc Report head on.

Tesla has temporarily halted production of its Model 3 electric cars at its Fremont, California assembly plant for two weeks - something that has Wall Street speculating may have to do with the ongoing semiconductor shortage.

Bloomberg reported on Thursday that workers on a Model 3 production line in Fremont were told their line would be down from Feb. 22 until March 7.

A reason for the production halt wasn’t cited, though Tesla last month said that it’s trying to mitigate the effects of a global semiconductor shortage on its operations – something other carmakers including Ford F have been struggling with.

Earlier this month, Ford (F) - Get Report said it would cut production of its extremely popular F-15 pick-up truck at two plants due to a worldwide shortage of computer chips. General Motors (GM) - Get Report, too, also warned that it may face production delays for the same reason.

Jim Cramer has also emphasized that the chip shortage is "very real."

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