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

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

The CEO says that the automaker will increase production with a second shift in order to meet demand, in a new email to employees obtained by Electrek.

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

We speculated that it could be due to the global microchip shortage that has been affecting 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 that the entire factory was affected for a few days:

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.

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

Musk added that the factory is now restarting:

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.

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

He confirmed that the retooling for the refresh version of the two electric flagship vehicles is almost done, and that the production will ramp up over the next quarter.

Musk even added that Tesla is seeing “high demand” for the new versions, and that they plan to bring back a second production shift for Model S and Model X, something that hasn’t happened in a long time.

The CEO wrote in the email:

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 sales have been declining over the last few years.

It was mostly due to the vehicle programs becoming stale as Tesla focused on the new Model 3 and Model Y. Those new models cannibalized some of the higher end model sales.

Last month, Tesla introduced a refresh version of the Model S and Model X that is expected to breathe some life into the two flagship vehicle programs.

When launching the new vehicles, Musk said that deliveries should start this month, but it looks like the retooling might have taken longer.

Here’s the email in full:

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