Yesterday, Elon Musk confirmed that the Tesla Model S is not lacking in the demand department. According to comments from the CEO the updated Model S and Model X are experiencing “high demand” steering the automaker to increase production in order to meet it.
Tesla also announced yesterday that it has shut down a Model 3 production line at its factory in Fremont, CA until March 7th. There was no confirmation on the reason for the shut down but reports have speculated that it may be in part caused by the current industrywide microchip shortage.
Now a new email to Tesla employees, from CEO Elon Musk, has shed some light regarding the shutdown, revealing the automaker didn’t just shutdown a Model 3 production line, but the whole factory for a short period. Musk confirmed the cause behind the shutdown was due to “parts supply issues”: “We are experiencing some parts supply issues, so we took the opportunity to bring Fremont down for a few days to do equipment upgrades and maintenance.”
Musk added in the email that the factory is now back up and running stating: “Fremont production is back up and running as of yesterday and will speed up rapidly to full Model 3/Y production over the next few days.”
Musk also used the email to commented on production of the updated Model S and Model X at its Fremont factory, confirming that the retooling for the refresh is almost done. The CEO stated the production of the two refreshed electric flagships will ramp up in the coming months as Tesla is seeing “high demand” for the new versions: “Model S/X production lines are almost done with the retooling and will be aiming for max production next quarter. There is high demand, so we are soon going to need to go back to two shifts. Please recommend friends for recruiting.”
Tesla Model S and Model X were long overdue for an update, with an old vehicle problem and Tesla refreshing their other vehicles, it’s no wonder Model S and Model X sales have dropped over the years.
Tesla finally introduced a refreshed version of the Model S and Model X last month during the automakers 2020 earnings call. It was slated to start deliveries this month, but that doesn’t look likely at this point. The CEO claimed Tesla would hold another call in the following weeks specifically regarding the refreshed vehicles, but that never happened.
Check out Elon musk’s full email to employees below (via Electrek):
“We are experiencing some parts supply issues, so we took the opportunity to bring Fremont down for a few days to do equipment upgrades and maintenance.
Fremont production is back up and running as of yesterday and will speed up rapidly to full Model 3/Y production over the next few days.
Model S/X production lines are almost done with the retooling and will be aiming for max production next quarter. There is high demand, so we are soon going to need to go back to two shifts. Please recommend friends for recruiting.
Thanks,
Elon“