The US-based electric vehicle company Tesla has announced to shut down the production of Model S and Model X. The production of Model X was started in 2015 while Model S was introduced in 2012. According to the company, the vehicles will not be manufactured at its Fremont factory. The factory is based in California. However, the production will be put on hold for 18 days. The 18 days suspension period will begin from December 24. According to the policy announced by Tesla, it will pay the workers for the suspension period. Workers on production lines will be paid a full week’s salary. Others will be given paid holidays for 18 days. Tesla is owned by business magnet Elon Musk.
The company has already communicated to its staff about the wage policy. The company is also encouraging staff to seek shifts to work. Besides, it has asked them to volunteering in other tasks for the unpaid days. The company memo also told workers to assist with the delivery of vehicles for 18 days. Model S and Model X are older models. The decision to shut down the production suggests that the high demand does not extend to these vehicles. The company didn’t issue any specific statement why it decided to shut down production of its Model S and Model X during the holiday season.
According to the company’s data, it manufactured 145,000 vehicles in the third quarter of 2020. This includes 17,000 Model S and Model X vehicles. The company, however, delivered 139,300 vehicles which includes 15,200 of the two models. Musk has also sent a separate email to the workers. He underlined that the demand for Tesla vehicles is higher than production in the third quarter. The development comes close n the heels of Musk’s decision to relocate to Texas from California. The company has started work on building its next factory in Austin. Musk has also threatened to move the production out of the Silicon Valley. He had earlier called California complacent.
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