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Tesla to shut down Model S and Model X lines for rumored design “refresh”
Recently leaked emails from Tesla CEO Elon Musk have revealed that the electric car maker intends to shut down the Model S and Model X line at the Fremont Factory for 18 days starting December 24, 2020. The reasons behind the halt in the flagship sedan and SUV’s production were not specified by the company, though speculations suggest that the 18-day halt may be used to introduce some much-needed hardware updates for the Model S and Model X.
In one of his emails, a copy of which was retrieved by CNBC, Elon Musk announced that Tesla employees working on the Model S and X line will be offered a full week of pay to cover 7 of the 18 days that will be affected by the shutdown. The CEO also encouraged the affected workers to volunteer and help out in the company’s Q4 delivery efforts.
Following is Elon Musk’s email in full:
Subject: S/X Holiday Shutdown
Hi Team,
The SX lines will be shut down for the holidays starting Dec. 24th and returning Jan. 11th.
We would like you to take the opportunity to refresh or spend time with your family, so Tesla will be giving you a full week pay for the week of Jan. 4th. There will also be limited paid opportunities for you to support other shops or volunteer for deliveries during some of this time.
Dec. 23rd – last day of work before shutdown
Dec. 24th-25th – Paid holidays*
Dec. 28th-30th – Unpaid time off (may use PTO**), support deliveries or other shops.
Dec. 31st-Jan. 1st – Paid Holiday*
Jan. 4th – 8th – Paid time off (40 hours)
Jan. 11th – return to work
If you would like to volunteer for deliveries for Dec. 26th — Dec. 31st, or support other shops from Dec. 28th – Dec. 30th, please use the survey below to let us know your preference. We will do our best to accommodate your requests, but preferences are not guaranteed and will be granted on a first come first serve basis.
While the shutdown of the Model S and Model X line this Q4 may be interpreted as a bearish sign of declining demand by Tesla critics, the production halt does give the company some time to update the vehicles’ manufacturing facilities. Tesla has kept silent about any upcoming improvements for the Model S and Model X, of course, but considering the company’s reputation and nature, it would not be surprising if it ends up using the 18-day shutdown to make sure that the two flagship vehicles will return better than ever.
In a separate email, Elon Musk emphasized that Tesla’s main issue today is demand. In true Tesla fashion, Musk also asked for any suggestions that would help the company improve its output further. Such improvements would go a long way in aiding Tesla this fourth quarter, seeing as the company would have to deliver about 180,000 vehicles before the end of the year to meet its half-a-million vehicle target for 2020.
Following is Musk’s email to Tesla employees about the matter.
Subject: Vehicle Production
We are fortunate to have the high class problem of demand being quite a bit higher than production this quarter.
To ensure that we have the best possible customer outcome and earn the trust of the customers and investors who have placed their faith and hard-earned money with us, we need to increase production for the remainder of the quarter as much as possible.
I would only send this note if it really mattered.
Super appreciated,
Elon
Btw, please send me a note directly if you see ways to improve output, but feel that your voice is not being heard.
Tesla has expanded its Robotaxi program to Miami, Florida, marking the third state the autonomous ride-hailing platform has made its way to since launching last Summer.
Tesla announced today that the Robotaxi suite would now officially launch rides in a geofence in Miami:
🚨 Tesla’s “Long Weekend” continues with a HUGE announcement regarding Robotaxi!
It’s now in Miami!
Miami joins Austin, Dallas, San Antonio, Houston, and the Bay Area! https://t.co/ujjYjJT3Im pic.twitter.com/yPe1ZdSQIE
— TESLARATI (@Teslarati) July 3, 2026
The first geofence in Miami covers approximately 10 to 14 square miles. The area appears to be focused on western and central Miami, including Miami International Airport (MIA). It also includes popular routes like SR 826 (Palmetto Expressway), US 41 (Tamiami Trail), and connectors such as SR 968, 953, 959, and 972.
This is Tesla’s initial Miami launch zone, smaller and more targeted than some competitors’ areas (for example, Waymo’s initial rollout was broader in eastern neighborhoods). It prioritizes high-traffic, airport-linked routes before wider expansion.
The expansion is a huge signal for Tesla that it is now operating in Florida, a heavy-traffic state with many tourist areas, including Fort Lauderdale, Palm Beach, and the Boynton area, all of which are coastal and will attract perhaps millions of tourists in any given year.
¿Qué lo que Miami?
Robotaxi now available in Miami pic.twitter.com/P1m283seZU
— Tesla Robotaxi (@robotaxi) July 3, 2026
The Tesla Robotaxi network launched last year on June 22, in Austin, Texas, beginning limited commercial operations in that city. It expanded shortly thereafter into the San Francisco Bay Area of California in late July 2025, marking entry into a second state with service covering key areas such as San Francisco, San Jose, and Berkeley.
Full commercial service was achieved in Austin by November 18, 2025, strengthening its presence within Texas before further growth.
In 2026, the network continued expanding across Texas with the addition of Dallas and Houston on April 18, significantly broadening its footprint in the state. This new launch into Miami marks Tesla entering a new state and bringing active locations to include Austin, Dallas, Houston, San Antonio in Texas, and the Bay Area in California.
These sequential expansions have steadily increased the network’s reach across major metropolitan areas in Texas, California, and Florida, focusing on scaling operations city by city and state by state since the initial Austin debut.
Tesla CEO Elon Musk has tempered expectations for the company’s humanoid robot Optimus, emphasizing that initial production will ramp up slowly despite recent progress on the manufacturing line. In a July 1 reply on X, Musk responded to optimistic community speculation by stating, “No, Optimus production will be extremely slow at first, as everything is new. This is not like making a car.”
No, Optimus production will be extremely slow at first, as everything is new. This is not like making a car.
— Elon Musk (@elonmusk) July 1, 2026
The comment came in response to a post theorizing that Tesla had accelerated Optimus V3 development and might soon unveil an impressive demonstration with multiple units already in meaningful production. Musk’s clarification highlights the fundamental differences between scaling a novel humanoid robot and Tesla’s established automotive operations, which benefit from over a century of refined supply chains, tooling, and processes.
Recent updates show tangible advancement. Musk shared a photo of himself walking the Optimus production line at Fremont, where Tesla is converting former Model S/X manufacturing space. According to Q1 2026 earnings commentary, limited production is slated to begin in late July or August 2026 on this converted line.
Tesla Optimus project fires up as Musk sees production line progress
Musk previously noted that Optimus features roughly 10,000 unique parts, making early output rates “literally impossible to predict” and describing them as “quite slow.” A larger dedicated factory at Giga Texas is under construction, targeting higher-volume production around summer 2027 with long-term annual capacity potentially reaching millions of units.
Some experts point out that pioneering humanoid robotics demands inventing new automation techniques, actuator supply chains, and quality-control standards in real time. Unlike vehicles, where components and assembly methods are mature, every element of Optimus—from dexterous hands to AI-integrated movement—requires fresh engineering solutions. Early units are expected to handle simple factory tasks before expanding to more complex roles.
This cautious approach aligns with Tesla’s history of under-promising and over-delivering on complex technologies. While enthusiasts hoped for rapid deployment, Musk’s message underscores a deliberate strategy: prioritize reliability and iterative improvement over rushed volume.
Analysts suggest the S-curve ramp typical of new manufacturing will eventually accelerate once foundational issues are resolved, positioning Optimus as a potential trillion-dollar product line.
Musk has long envisioned Optimus transforming labor markets, assisting in homes, factories, and hazardous environments. By setting realistic timelines, Tesla aims to build sustainable momentum rather than risk disappointment. As the Fremont line comes online this summer, investors and fans will watch closely for the first production metrics and capability demonstrations.
Tesla has officially launched the Model Y L in the United States and Puerto Rico for $61,990. It is the longer-wheelbase version of the Model Y, and has been available in China since last year.
Tesla brings the Model Y L to the U.S. just months after it phased out the only pure SUV in its lineup, the Model X. It is slightly longer than the Model Y configurations that are already available in the U.S., and features a three-row, six-seat setup with Captain’s Chairs being among the many features that make this a truly fantastic offering.
The Model Y L is priced competitively at $61,990, and features 325 miles of range and a 0-60 MPH in just 4.4 seconds.
Tesla also added a handful of new features that are not available in even the Premium Model Y. Here’s a full list of its features:
- Heated/Ventilated Front Seats with Powered Thigh Cushion
- Heated/Ventilated Captain’s Seats in Second Row with Powered Armrests & One-Touch Fold
- Heated Third-Row Seats with Power Recline, One-Touch Fold & Child Seat Anchors
- Improved Airflow, Increased Efficiency, More Range
- 89 cubic feet of trunk space
- Upgraded Acoustic Glass and Suspension to Minimize Road Noise
- Adaptive Damping for a Smooth, Stable Ride
- Staggered Tires for Enhanced Grip
- Larger Tailgate for Better Rear Visibility and Bigger Windows Overall
- 16″ First Row and 8″ Second Row Touchscreens
- 19-Speaker Immersive Tesla Audio
- 50W Wireless Charging Pads with Active Cooling and Charging Ports for All Other Seats
- FSD Supervised and Integrated Grok AI
Tesla is also delivering these first units as a “Launch Series,” which comes with additional features, such as:
- Door Trim Puddle Lights
- Suede Dashboard Wing
- Exterior and Interior Badging
- Floor Mats
- Sill Plates
The launch of the Model Y L in the U.S. marks a huge offering from Tesla to U.S. consumers. People have been calling for Tesla to bring a larger car to the U.S., and it needed it more than ever now that the Model X is gone.
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- Credit: Tesla
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- Credit: Tesla
It is a huge accomplishment for Tesla to get the Model Y L to the U.S., and after reporting strong deliveries today, it will be interesting to see how this car impacts future quarterly delivery reports.
Deliveries for the Model Y L “Launch Series” are slated for September or October of this year.
Tesla expands Robotaxi to Florida, marking its third state for autonomy
