These models will not be produced for 18 days
Tesla’s electric vehicles are in high demand even during the COVID-19 pandemic, but their sales mix is heterogeneous: the cheapest Model 3 and Model Y are the most popular, while the Model S and Model X are poorly sold. For example, last quarter Tesla sold 139,300 cars, of which the Model X and Model S accounted for 15,200 in total.
Demand for expensive electric vehicles falls, Tesla to suspend production of Model S and Model X
Weak demand is clearly the main reason for the suspension of production of the Model X and Model S. CNBC has an internal Tesla email stating that the Model X and Model S will not be produced for 18 days – from December 24 to January 11. Another letter notes that the demand for these cars was “just slightly higher” production volumes, and this is further evidence of their low popularity among consumers.
Workers involved in the assembly of the Model X and Model S will be paid for one week of downtime and holidays during this period. They are also promised “limited payment options” when working with other teams.
