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Tesla to cut production hours for Model S and X By Reuters



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© Reuters. FILE PHOTO – A Tesla Model X is photographed with a Model S at a Tesla electric car dealer in Sydney

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(Reuters) – Tesla (NASDAQ 🙂 Inc said Wednesday it reduces production time to higher priced Model S and Model X cars, just days after saying it would cut jobs as the electric car manufacturer seems to make more affordable versions of the Model 3 sedan.

The company's shares fell 4.2 percent to $ 286.09.

Tesla is also faced with the inevitable choice to raise prices at risk of losing customers or cutting costs by thousands of dollars per dollar. Vehicle since the electricity tax disaster began to phase out earlier this month.

CEO Elon Musk had said earlier this month that Tesla will no longer take orders for the 75 kWh version of Model S and X to streamline production.

"Because of this change and because of improving the efficiency of our production lines, we have reduced model S and X production times accordingly," a Tesla spokesman said in an email.

"These changes along with the continuation enhancements give us the flexibility to increase our production capacity in the future as needed."

The company said it would provide more details on the earnings call scheduled for next Wednesday.

A reduction in tax credit added $ 3,750 to the price of Tesla's electric cars started on January 1

. Musk had said that the need for cheaper versions of Model 3 will be even greater from July, when the US tax credit again falls in half.

This would add $ 1,875 to the car's price. The tax credit has been set aside at the end of 2019.

(This story corrects to remove foreign words "redundancies" in section five.)

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