Tesla has revealed that it will halt production of the Model S and Model X at its Fremont factory from December 24th to January 11th.
It is reported that employees at the Model S and Model X production lines have been offered a full week of pay to cover one week of the closure, alongside with a handful of paid holidays. They have also been asked to take 5 unplanned and unpaid days off, but have also been given the option to try and find work in other areas of the factory.
CNBC reports that employees have also been encouraged to volunteer and help make vehicle deliveries throughout the shutdown.
No official explanation for the halt in production has been given, but it likely has to do with slowing demand for the Model S and Model X. In fact, the electric car manufacturer delivered just 15,200 Model S and Model X EVs in the third quarter of 2020 out of a total of 139,300 vehicles delivered by Tesla, with the Model 3 and Model Y accounting for the bulk of sales. Engadget speculates that some of those in the market for the Model S may be waiting for the flagship Plaid variant to launch next year.
Elon Musk has made no secret of the fact that Tesla is aiming to deliver 500,000 vehicles this year. In order to make this happen, it will have to deliver 181,600 vehicles throughout the fourth quarter, which is no easy feat.