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US electric vehicle maker Tesla has recently suspended production at the first phase of battery pack production line in its Shanghai plant, reported Chinese tech news outlet 36Kr.
As Tesla’s main models Model3 and Model Y will soon be revised with upgraded battery pack, the carmaker plans to let its suppliers produce its self-made battery pack, which led to the suspension of the first phase of the battery line, the report said.
In Tesla’s Shanghai Gigafactory, there are three battery factories – phase 1, phase 2 and phase 2.2 and the suspended phase 1 was the oldest one.
It had been reported earlier than Tesla’s Shanghai Gigafactory has started cutting jobs in its battery assembly division and the layoffs mainly involve employees of the first phase the battery assembly.
More than 50% of the employees will be laid off, involving hundreds of people, and most of them will be laid off with negotiated compensation, with a small number of them to be transferred, according to Chinese news outlet IT Home.
Tesla will provide N + 3 package, N + 2 or N + 1 + 1 package, according to the report, citing laid-off employees.