Over the Christmas holidays, the production lines for the Model S and Model X at Tesla will be closed significantly longer than usual this year. According to media reports, there are several possible reasons for this extended stop.
One of the reasons mentioned – and that really seems the most plausible reason for the announced production stop at Tesla in Fremont – is that Tesla is planning an update for its two high-end vehicles. Among other things, Electrek says that a design refresh is planned. Previously, an internal email made the rounds, in which it was announced that Tesla in Fremont would suspend production of Model S and Model X from December 24th to January 11th.
Production stop for 18 days
Tesla CEO Elon Musk informed the workforce in the email that production was being paused. Overall, the production lines of the two electric cars at the main plant in Fremont are to be shut down for 18 days. The employees who normally worked on the production lines were told that they were being paid a full week of wages for the forced time off. In addition, they were asked to report in order to work in other areas of the company during the further break.
The news channel CNBC also speculated that the shutdown of the S and X production lines suggests that the inherently high demand at Tesla does not extend to these older models and Tesla is therefore stopping them. At the end of September, Tesla published an annual report showing that only about eleven percent of vehicle deliveries concerned the Model S and X and the rest were Model 3 and Model Y sales. The company did not respond to a request from CNBC regarding this matter.
Manager at Research Snipers, RS-NEWS, Digital marketing enthusiast and industry professional in Digital technologies, Technology News, Mobile phones, software, gadgets with vast experience in the tech industry, I have a keen interest in technology, News breaking.