Tesla plans to shut down the Model S and Model X lines at Fremont Factory for 18 days beginning on December 24, 2020, according to leaked emails from Tesla CEO himself Elon Musk. The leaked emails did not state any reasons as to why the automaker will shutdown flagship sedan and SUV productions but Tesla enthusiasts’ theories say that the 18-day shutdown could be used to incorporate some much-needed hardware upgrades for Model S and Model X.
A copy of a memo obtained by CNBC, Musk revealed that Tesla employees operating on the Model S and X lines would be given a full pay week to compensate for 7 of the 18 days that would be impaired by the interruption. The CEO also urged the impacted staff to volunteer to assist with the company’s Q4 distribution activities.
The email has the following details:
Subject: S/X Holiday Shutdown
The SX lines will be shut down for the holidays starting Dec. 24th and returning Jan. 11th.
We would like you to take the opportunity to refresh or spend time with your family, so Tesla will be giving you a full week pay for the week of Jan. 4th. There will also be limited paid opportunities for you to support other shops or volunteer for deliveries during some of this time.
Dec. 23rd – last day of work before shutdown
Dec. 24th-25th – Paid holidays*
Dec. 28th-30th – Unpaid time off (may use PTO**), support deliveries or other shops. Dec. 31st-Jan. 1st – Paid Holiday*
Jan. 4th – 8th – Paid time off (40 hours)
Jan. 11th – return to work
If you would like to volunteer for deliveries for Dec. 26th — Dec. 31st, or support other shops from Dec. 28th – Dec. 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 serve basis.
Although the freeze of Model S and Model X line Q4 may be perceived as a bearish sign of decreasing expectations by Tesla’s critics, the shutdown of production allows the company to upgrade the vehicle production plants. With the automaker’s reputation to continuously improve, Tesla is likely to take advantage of the “time off” to overhaul Model S and Model X for better versions once the production resumes again.
Elon Musk underscored in a separate email that Tesla’s biggest concern today is production. In true Tesla form, Musk also asked for any suggestions that would enable the business to further boost its production. Such developments will go a long way towards supporting Tesla this fourth quarter, as the firm would have to manufacture nearly 180,000 vehicles by the end of the year to reach its half-a-million vehicle goal for 2020.
The following is Musk’s email to the Tesla staff on the matter.
Subject: Vehicle Production
We are fortunate to have the high class problem of demand being quite a bit higher than production this quarter.
To ensure that we have the best possible customer outcome and earn the trust of the customers and investors who have placed their faith and hard-earned money with us, we need to increase production for the remainder of the quarter as much as possible.
I would only send this note if it really mattered.
Btw, please send me a note directly if you see ways to improve output, but feel that your voice is not being heard.