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Tesla tells employees Model S and X production will shut down for 18 days – CNBC

Kuka robots work on Tesla Model X within the Tesla manufacturing facility in Fremont, California, on Thursday, July 26, 2018.

Mason Trinca | The Washington Submit | Getty Pictures

Tesla knowledgeable employees in its Fremont, California, manufacturing facility on Friday that its Model S and Model X electrical automobile production strains will shut from December twenty fourth to January eleventh, in keeping with an e-mail seen by CNBC.

Employees engaged on these strains have been supplied a full week of pay to cowl one of many two and a half weeks of the shutdown, together with a couple of paid holidays. They have been requested to take 5 unplanned and unpaid days off, however have the choice to attempt to discover work in different areas of the manufacturing facility throughout these days.

They have been additionally inspired to “volunteer” to assist make electrical automobile deliveries to prospects in the course of the shut down.

In a separate e-mail despatched to all the firm on Friday, Tesla CEO Elon Musk famous that the corporate is “lucky to have the excessive-class drawback of demand being fairly a bit increased than production this quarter” and requested for employees to extend production as a lot as potential throughout the remainder of the quarter.

The shutdown of the S and X strains means that the excessive demand doesn’t lengthen to those older fashions. It is not clear what Tesla intends to do with its Model S and X strains in the course of the vacation shutdown. The corporate didn’t instantly reply to a request for remark.

The corporate has been combating a recall in China, and security probe by NHTSA, and warranty expansion masking a few of its excessive-finish Model S sedans, and its luxurious SUV with falcon wing doorways, the Model X, this 12 months.

Deliveries of those automobiles amounted to fifteen,200 within the third quarter of 2020, in keeping with the corporate’s automobile production and deliveries report from the interval ending September 30 representing round 11% of car deliveries in the course of the quarter.

At an annual shareholder assembly and battery day investor presentation earlier this 12 months, executives stated that the lengthy-anticipated Tesla Model S Plaid would begin deliveries in late 2021.

Here is what the e-mail to production employees engaged on the Model S and Model X SUV stated (as transcribed by CNBC):

Topic: S/X Vacation Shutdown

Hello Crew,

The SX strains will be shut down for the vacations beginning Dec. twenty fourth and returning Jan. eleventh.

We wish you to take the chance to refresh or spend time with your loved ones, so Tesla will be supplying you with a full week pay for the week of Jan. 4th. There will even be restricted paid alternatives for you to help different retailers or volunteer for deliveries throughout a few of this time.

Dec. twenty third – final day of labor earlier than shutdown

Dec. twenty fourth-twenty fifth – Paid holidays*

Dec. twenty eighth-thirtieth – Unpaid break day (could use PTO**), help deliveries or different retailers.

Dec. thirty first-Jan. 1st – Paid Vacation*

Jan. 4th – eighth – Paid break day (40 hours)

Jan. eleventh – return to work

If you need to volunteer for deliveries for Dec. twenty sixth — Dec. thirty first, or help different retailers from Dec. twenty eighth – Dec. thirtieth, please use the survey under to tell us your desire. We will do our greatest to accommodate your requests, however preferences aren’t assured and will be granted on a primary come first serve foundation.

Here is the separate e-mail from Musk to all employees (as transcribed by CNBC):

Topic: Automobile Production

We’re lucky to have the excessive class drawback of demand being fairly a bit increased than production this quarter.

To make sure that we now have the very best buyer end result and earn the belief of the shoppers and buyers who’ve positioned their religion and arduous-earned cash with us, we have to enhance production for the rest of the quarter as a lot as potential.

I might solely ship this be aware if it actually mattered.

Tremendous appreciated,

Elon

Btw, please ship me a be aware immediately if you happen to see methods to enhance output, however really feel that your voice will not be being heard.

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