Tesla will stop production of its Model S and Model X starting December 24, according to an internal memo. CNBC Report. It was not immediately clear why and what the company would do on both lines during the shutdown, but those working on the production line will apparently receive a week’s salary, some paid leave and opportunities to work on other teams in the company.
The memo also states that workers can volunteer to help deliver vehicles to customers when manufacturers are off work.
Auto Industry Analyst Edward Niedermeyer noted K Tesla asked California for a tax break in 2015 for the equipment needed to build 195,000 Model S and Model X vehicles by 2021. The company told the state of California at the time that it would increase its production capacity in anticipation of production of about 118,000 additional models. S and X vehicles per year, ”in addition to its estimated annual rate of 77,000 Model S and X vehicles.
In the third quarter of 2020, Tesla produced 145,000 vehicles and delivered 139,300. Of that number, Tesla produced only 17,000 under the Model S and X vehicles, of which 15,200 were distributed.
Tesla, its next Stein, is building its next factory in Texas, and CEO Elon Musk has threatened to move all of Tesla’s products out of California. He confirmed that he had relocated his personal residence from California to Texas, following which he was predicted to save millions in taxes.
In a separate email to employees on Friday, Musk said demand for Tesla vehicles was “slightly higher than production this quarter” and urged employees to increase production as much as possible. Bloomberg Report. “Please send me a note directly if I see ways to improve the output, but I don’t think your voice is heard,” he wrote in an email.
During Tesla’s October Battery Day event, the company said it expects to deliver 500,000 vehicles by 2020. But at the time the company shipped 318,350 cars to customers, so it would need to deliver more than 181,000 vehicles before the end of the year. Hit his target.
Tesla did not respond to a request for comment on Sunday.
