Tesla to stop production of Model S and X for 18 days

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This photo taken on March 17, 2015 shows Tesla Model S vehicles parked in front of a car dealership in Shanghai.

This photo taken on March 17, 2015 shows Tesla Model S vehicles parked in front of a car dealership in Shanghai.
Photo: Johannes Eisele (Getty Images)

On the same day that Tesla CEO Elon Musk told his employees they needed to increase production “as much as possible” for the rest of the year, the company allegedly sent an email advising its employees at its Fremont, Calif., plant that it was shutting down its Model S and Model X production lines for 18 days starting December 24. Talk about mixed signals.

According to a CNBC Report released on Saturday, Tesla offered employees working on those production lines a full week’s pay and a few days of paid vacation. Nonetheless, employees have been urged to take five unplanned, unpaid days off, although an email reviewed by the outlet says “paid opportunities” will be limited for workers to support other parties. From the factory.

It must be said: we are living a pandemic, a time during which millions have seen their wages drop or have their hours reduced. Tesla himself reduced salary for salaried workers in the first months of the pandemic, from April to June, and placed some hourly workers on unpaid leave.

Therefore, it would be understandable, albeit unfortunate, for production to be affected by the pandemic, if this is really the case. Tesla, for some reason, didn’t acknowledge the reality of what we’re going through in its employee announcement, per CNBC. Instead, he said he wanted workers to “take the opportunity” to rest and spend more time with their families.

“We would love for you to take the opportunity to refresh yourself or spend time with your family, so Tesla will give you a full week’s pay for the week of January 4,” the email said, as transcribed by CNBC. “There will also be limited paid opportunities for you to support other stores or volunteer for deliveries during part of this time.

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Say what now? If this is true, that’s a messed up way of explaining a production shutdown. Gizmodo contacted Tesla on Sunday to confirm CNBC’s report. We will make sure to update this blog if we receive a response. Please note that we are not sure to receive a response since the company dissolves its public relations team in October.

As you can all see in the email, shutting down production isn’t all Tesla mentioned – he also said workers could “volunteer” to deliver vehicles. Now, there is nothing wrong with giving your workers paid opportunities to deliver vehicles, especially if the factory is facing a demand crisis, but it is another thing to expect. that your workers deliver vehicles without pay. It’s unclear if these opportunities are paid, and that’s one of the questions we asked Tesla on Sunday.

What makes this production decision even more confusing is that on the same day Musk emailed all employees asking them to increase production for the remainder of the quarter as much as possible.

“We’re lucky to have the high class issue of demand being a little higher than production this quarter,” Musk wrote. “To ensure the best possible customer outcome and earn the trust of customers and investors who have placed their trust and hard-earned money in 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.

CNBC speculates that the shutdown of the Model S and Model X production lines suggests that the high demand Musk is referring to does not apply to these cars. He noted a recent about 50,000 recall of Model S and Model X cars in China for potentially defective and dangerous front and rear suspensions in October, as well as extended warranty and repair reimbursements offered for older models of both vehicles that suffered main IT problems in November.

At the end of the day, cars have problems. It’s not a secret. We are going through difficult times. It’s no secret either. Sometimes the demand for certain cars decreases. Whatever the reason for the production shutdown, it’s best to be upfront about it, or at least not pretend that everything is fine and that workers are going to be spending more time with their families during the holiday season.

Tesla produced 145,036 cars in the third quarter, 16,992 were Model S and Model X. It produced 128,044 Model 3 and Model Y vehicles.

[CNBC]

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