Tesla Model Y and Model 3 production paused

Tesla's Australian arm is facing further stock delays, with reports emerging of Model Y and Model 3 production coming to a halt this month.

According to Automotive News, the Shanghai production line for the Model Y will pause for the first two weeks of the month, followed by the Model 3 line stopping work for 20 days from July 18.

It's understood Tesla is planning performing upgrades to the Chinese facility, which will allow it to increase future output for markets served by the factory, including Australia – which now exclusively imports cars from south-east Asia.

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Announced for Australia last month, unprecedented demand for the Model Y led Tesla boss Elon Musk to declare the manufacturer was working on accelerating production of its right-hand-drive models.

Despite driving up the price of its SUV to $72,300 and $96,700 before on-road costs for the base and Performance grades respectively, Tesla's website still lists wait times of between seven and 12 months, identical to the projected delivery period for the Model 3.

The electric sedan was Australia's most popular EV last year and at the start of this year, however extended lockdowns in Shanghai have put a dent in its recent sales performance, delivering just 172 examples last month – 29 units less than its Polestar 2 rival.

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It's understood Tesla's new German plant just outside Berlin will also be taking a two-week break from July 11, with August production set to double the current output.

The Grünheide factory will eventually produce 500,000 cars annually, although it currently only manages roughly 4500 per week.