Connect with us

News

Tesla to shut down Model S and Model X lines for rumored design “refresh”

(Photo: Tesla Photographer/Instagram)

Published

on

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.

Advertisement
-
-

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.

Advertisement
-
-

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.

Advertisement
-
-

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.

Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

Advertisement
Comments

Elon Musk

The Boring Company’s newest tunnel vehicle runs on Tesla parts and no one is driving it

The Boring Company’s new tunnel vehicle runs on Tesla Model 3 batteries and drive units.

Published

on

By

The Boring Company just introduced a new piece of hardware, and it runs on parts pulled straight from a Tesla showroom. Liner Truck 3, unveiled in a post from the tunneling company’s official X account, is an all electric vehicle built around Tesla Model 3 battery packs and drive units, purpose built to move concrete tunnel segments to the boring machine face without a single person underground.

The job itself is unglamorous but critical. Each precast segment run weighs more than 22,000 pounds, roughly the load of a full cement mixer, and Liner Truck 3 hauls that weight repeatedly between the surface staging area and wherever the Prufrock machine happens to be cutting.

The Boring Company said Liner Truck 3 is piloted remotely out of its Global Operations Control Center in Texas, extending the Zero-People-In-Tunnel approach the company has spent years building toward. An earlier version of a ZPIT liner truck was already tested at the company’s Bastrop, Texas research tunnels, and a factory tour released last month showed an employee flying a fully loaded liner truck with a PlayStation controller. Liner Truck 3 looks like the production version of that same idea, cleaned up and pushed into daily use.

The timing lines up with a company digging in more places than it ever has before. The Boring Company now has multiple Prufrock machines active or arriving in Nashville, where Music City Loop construction has been accelerating since February, and its Vegas Loop network keeps adding tunnel mileage on a near monthly basis. Every one of those projects depends on getting concrete segments to the cutting face fast enough to keep the boring machine from idling, which is exactly the bottleneck Liner Truck 3 is designed to remove.

Advertisement
-
-

It also reinforces something Tesla owners have watched happen gradually across Musk’s companies: passenger car hardware finding a second life in heavy equipment. Model 3 drive units already move people through the Vegas Loop, and now the same components are hauling concrete underground in Nashville and wherever The Boring Company digs next. Whether that kind of component reuse extends further into TBC’s equipment lineup, or into other Musk owned industrial hardware, is the next thing worth watching.

Continue Reading

Elon Musk

Elon Musk and SpaceX shrugs off the trading day Wall Street feared most

Published

on

By

Rendering of Elon Musk overlooking a Starship fleet (Credit: Grok)

SpaceX stock did the opposite of what most of Wall Street expected this week, when the day designed to be its most dangerous turned into a rally, and the rally kept going.

Thursday marked the first major lockup expiration since SpaceX’s June IPO, making roughly 911.5 million insider held shares eligible to trade for the first time, more than doubling the company’s public float. Analysts and short sellers had spent weeks bracing for a flood of selling, especially after the stock fell 13 percent following its first earnings report as a public company on Tuesday. Instead, shares rose 6.1 percent Thursday to close at $114.92, and by Friday they were trading near $129, up more than another 12 percent on the day.

SpaceX shorts get warned by Musk ally, echoing Tesla’s early struggles

The setup made the outcome notable. Short interest had climbed to roughly 34 percent of the float heading into earnings, among the highest of any large cap stock, with about 95 percent of available shares to borrow already on loan. CEO Elon Musk warned short sellers twice in the weeks before the lockup, writing on X that “the survival probability of firms who maintain a significant short position in SpaceX over time is very low,” then following up on the morning of earnings with “I try to warn them, but they just double down.”

When the newly unlocked shares hit the market and the selloff never showed up, some of that short position appears to have started unwinding. TipRanks reported that options activity shifted toward bullish strategies like put selling and risk reversals following the rally, with roughly $600 million in options premium trading Thursday alone. Retail buyers also stepped in during the earnings dip, according to Vanda Research.

The fundamentals behind the stock have not changed much in a week. SpaceX’s revenue nearly doubled year over year to $7.8 billion, with Starlink subscribers doubling to 12 million and the company’s AI segment growing 247 percent. What spooked investors on Tuesday was the spending side. Capital expenditures jumped to more than $18 billion for the quarter, up from $2.8 billion a year earlier, with AI investment alone rising from $749 million to $15.8 billion. Wall Street remains split on whether that spending is building infrastructure SpaceX needs or outrunning what the business can currently support, a debate Teslarati has tracked since shares first came under pressure.

None of that resolves the bigger question hanging over the stock. Thursday’s release was only the first of nine staggered lockup tranches, with roughly $800 billion worth of additional shares scheduled to become eligible through October, and Musk’s own stake stays locked until next June. If this week is any indication, the market is treating that supply as something it can absorb rather than something to fear, at least for now.

Advertisement
-
-
Continue Reading

News

The Boring Company’s newest Vegas Station has a permit quietly waiting behind it

Sahara Las Vegas opened a new Vegas Loop station, joining an exclusive two resort transit club.

Published

on

By

Sahara Las Vegas opened a new Vegas Loop station Thursday, giving The Boring Company’s underground transit system its northernmost stop yet on the Strip. The station sits at Sahara’s Paradise Road entrance, on the southeast corner of Las Vegas Boulevard and Sahara Avenue, and connects riders to the Las Vegas Convention Center, other Strip resorts on the network and, eventually, Harry Reid International Airport.

The addition makes Sahara the second resort, after Fontainebleau opened its own station in January, to get a stop built at street level rather than tucked into the property itself. Sahara now joins Westgate as the only two Strip resorts offering both a Vegas Loop station and a stop on the Las Vegas Monorail, giving guests two separate ways to get around without leaving the property.

The Boring Company just doubled its tunneling power in Nashville

The bigger news buried in Thursday’s announcement is what comes next. Boring Company has already secured its first permit to tunnel north of Sahara Avenue, extending the network beyond where it currently ends, even though permits to push the Loop toward downtown Las Vegas still haven’t been granted. Crews are also working on a two mile dual tunnel line running from Westgate to a planned station at 4744 Paradise Road, just north of Tropicana Avenue, that Las Vegas Convention and Visitors Authority CEO Steve Hill has said the company hopes to open in time for November’s Las Vegas Grand Prix.

Ridership has grown alongside the buildout. The Loop moved roughly 82,000 passengers during CONEXPO in early March, a total the company highlighted on its own X account at the time, and the system has now carried more than 4 million passengers through 11 open stations since it began running in 2021. The airport connector tunnels, meant to give the Loop a direct link to Harry Reid, have slipped past their original first quarter target and remain under construction, with Boring Company director Mike Baier saying that a full opening is still a few months out.

For Sahara, the calculation is straightforward. Convention traffic drives a large share of Loop ridership, and a station at the property’s front door gives conventiongoers one more reason to book rooms on the Strip’s north end instead of closer to the convention center itself.

Advertisement
-
-
Continue Reading