Tesla Cuts Production Hours For Model S And X To Accommodate The Model 3

Tesla announced that it has reduced production hours for the Model S and Model X as it looks to increase production of entry-level Model 3 variant.

In an email sent to Reuters, a Tesla spokesperson said that the reduction in production hours for the Model X and Model S comes in response to the car manufacturer dropping the 75 kWh versions of the two models.

“As a result of this change and because of improving efficiencies in our production lines, we have reduced Model S and X production hours accordingly. These changes, along with continuing improvements, give us the flexibility to increase our production capacity in the future as needed,” the spokesperson said.

Tesla’s move to alter the production schedule of the Model S and Model X comes just a few weeks after the electric vehicle tax break started to be phased out. The automaker now has to decide whether it should raise prices of it vehicles or instead reduce costs in a bid to ensure it doesn’t lose customers.

A plethora of other Tesla models are also on the horizon and present even greater challenges to the electric car maker. These vehicles include the all-electric Semi, the next-generation Roadster and the affordable Model Y crossover. Elon Musk also recently confirmed that a vehicle which would slot below the Model 3 is a possibility.