Tesla to Shut Down Model S and Model X Production Lines for 18 Days

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Tesla will shut down the production lines for the sedan 'Model S' and the sport utility vehicle (SUV) 'Model X' for 18 days from the 24th of this month until January 10th next year, CNBC reported on the 13th (local time).

The company is said to have sent an email with this information to all employees at its Fremont plant in California.

Employees will receive one week's pay during the two and a half week production halt, and those who do not wish to take unpaid leave can work on other production lines.

The company did not disclose detailed reasons for the shutdown, but it is interpreted as an adjustment of production volume due to weak demand.

Earlier, Tesla CEO Elon Musk encouraged employees in an email sent on the 11th, stating, "We are facing a problem where demand exceeds production this quarter," and "We will expand production as much as possible by the end of the quarter."

Nevertheless, CNBC analyzed that the suspension of Model S and Model X production indicates that explosive demand has not reached the older models and higher-priced lines.

In particular, last month, 9,500 Model S and Model X vehicles were recalled in the United States, and the share of Model S and Model X in total sales has significantly decreased.

According to Tesla, in the third and fourth quarters of this year, 15,200 Model S and Model X vehicles were delivered, accounting for 11% of the total.

This content was produced with the assistance of AI translation services.