Elon Musk confirms ‘high demand’ for updated Tesla Model S / X, factory restarts after parts shortage



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Elon Musk has confirmed that Tesla has received “high demand” for the new, updated Model S and Model X.

The CEO says the automaker will ramp up production with a second shift to meet demand, in a new employee email obtained by Electrek.

Earlier today, we shared a report saying Tesla shut down a Model 3 production line for two weeks.

We speculated that this could be due to the global microchip shortage that has affected the auto industry.

In a new email Musk sent to Tesla employees, he confirmed the shutdown and that it was due to “parts supply issues,” but he actually said the entire plant was affected for A few days:

We are experiencing parts supply issues, so we took the opportunity to bring down Fremont for a few days to do equipment upgrades and maintenance.

The previous report only mentioned one Model 3 production line and for two weeks.

Musk added that the factory is now restarting:

Fremont production has been back on line since yesterday and will ramp up quickly to reach full production of the Model 3 / Y over the next few days.

In the email, Musk also commented on the production of the Model S and Model X at the Fremont plant.

He confirmed that retooling of the updated version of the two flagship electric vehicles is nearing completion and production will increase in the next quarter.

Musk even added that Tesla sees “strong demand” for the new versions, and that they plan to bring back a second production change for the S and X models, which hasn’t happened for a long time.

The CEO wrote in the email:

Production lines for the Model S / X are nearing completion with retooling and will aim for maximum production in the next quarter. There is a high demand so we will have to go back to two teams soon. Please recommend friends for recruitment.

Sales of Tesla Model S and Model X have declined in recent years.

This was mainly because vehicle programs were getting stale as Tesla focused on the new Model 3s and Ys. These new models cannibalized some of the premium model sales.

Last month, Tesla introduced an updated version of the Model S and Model X that should bring the two flagship vehicle programs to life.

When launching the new vehicles, Musk said deliveries are expected to begin this month, but it looks like retooling could have taken longer.

Here is the full email:

We are experiencing parts supply issues, so we took the opportunity to bring down Fremont for a few days to do equipment upgrades and maintenance.

Fremont production has been back on line since yesterday and will ramp up quickly to reach full production of the Model 3 / Y over the next few days.

Production lines for the Model S / X are nearing completion with retooling and will aim for maximum production in the next quarter. There is a high demand so we will have to go back to two teams soon. Please recommend friends for recruitment.

thank you,
Elon

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