Production of Tesla Model S and X will be stopped for 18 days: email

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Tesla informed workers at its Fremont, Calif., Plant on Friday that its Model S and Model X electric vehicle production lines would shut down from Dec. 24 to Jan. 11, according to an email CNBC viewed.
Employees working on these lines were offered a full week’s pay to cover one of the two and a half weeks of the shutdown, as well as a few paid holidays. They have been asked to take 5 unplanned and unpaid days off, but they have the option of trying to find work in other areas of the factory during those days.

They were also encouraged to “volunteer” to help make deliveries of electric vehicles to customers during the shutdown.

In a separate email sent to the entire company on Friday, Tesla CEO Elon Musk noted that the company was “lucky to have the high class problem of demand being a little higher. as production this quarter ”and asked employees to increase production as much as possible during the remainder of the quarter.

The shutdown of the S and X lines suggests that the high demand does not extend to these older models. It’s unclear what Tesla intends to do with its Model S and X lines while the holidays close. The company did not immediately respond to a request for comment.

The company has been grappling with a recall in China, a safety probe from NHTSA and an extended warranty covering some of its premium Model S sedans, and its luxury SUV with swing doors, the Model X, this year.

Deliveries of these vehicles amounted to 15,200 in the third quarter of 2020, according to the company’s vehicle production and delivery report for the period ending September 30, or about 11 percent of vehicle deliveries in the quarter.

At an annual shareholders meeting and Battery Day investor presentation earlier this year, executives said the long-awaited Tesla Model S Plaid will begin deliveries at the end of 2021.

Here’s what the email to production employees working on Model S and Model X SUVs says (as transcribed by CNBC):

Subject: S / X vacation termination

Hello team,

SX lines will be closed for the holidays from December 24 to January 11.

We would like you to take this opportunity to refresh yourself or spend some time with your family, so Tesla will give you a full week of pay for the week of January 4th. There will also be limited paid opportunities for you to support other stores or volunteer for deliveries during part of this time.

December 23 – last day of work before stopping

24-25 December – Public holidays with pay *

December 28-30 – Unpaid free time (can use PTO **), support deliveries or other stores.

31 December-Jan. 1st – Paid leave *

January 4 to 8 – Paid leave (40 hours)

January 11 – back to work

If you would like to volunteer for deliveries from December 26th to December 31st or support other stores from December 28th to December 30th, please use the survey below to let us know your preference. We will do our best to accommodate your requests, but preferences are not guaranteed and will be granted on a first come, first served basis.

Here is Musk’s separate email to all employees (as transcribed by CNBC):

Subject: Vehicle production

We are fortunate to have the upper class problem of demand being a little higher than production this quarter.

To make sure we have the best possible customer outcome and earn the trust of the customers and investors who have placed their trust and hard earned money with us, we need to increase production as much as possible for the remainder of the quarter.

I would only send this note if it really mattered.

Super appreciated,

Elon

Btw, please rate me directly if you see ways to improve the output, but feel your voice is not heard.

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