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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.
News
Tesla ships out an update for everyone that California caused
“This change only updates the name of certain features and text in your vehicle,” the company wrote in Release Notes for the update, “and does not change the way your features behave.”
Tesla has shipped out an update for its vehicles that was caused specifically by a California lawsuit that threatened the company’s ability to sell cars because of how it named its driver assistance suite.
Tesla shipped out Software Update 2026.2.9 starting last week; we received it already, and it only brings a few minor changes, mostly related to how things are referenced.
“This change only updates the name of certain features and text in your vehicle,” the company wrote in Release Notes for the update, “and does not change the way your features behave.”
The following changes came to Tesla vehicles in the update:
- Navigate on Autopilot has now been renamed to Navigate on Autosteer
- FSD Computer has been renamed to AI Computer
Tesla faced a 30-day sales suspension in California after the state’s Department of Motor Vehicles stated the company had to come into compliance regarding the marketing of its automated driving features.
The agency confirmed on February 18 that it had taken a “corrective action” to resolve the issue. That corrective action was renaming certain parts of its ADAS.
Tesla discontinued its standalone Autopilot offering in January and ramped up the marketing of Full Self-Driving Supervised. Tesla had said on X that the issue with naming “was a ‘consumer protection’ order about the use of the term ‘Autopilot’ in a case where not one single customer came forward to say there’s a problem.”
This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.
Sales in California will continue uninterrupted.
— Tesla North America (@tesla_na) December 17, 2025
It is now compliant with the wishes of the California DMV, and we’re all dealing with it now.
This was the first primary dispute over the terminology of Full Self-Driving, but it has undergone some scrutiny at the federal level, as some government officials have claimed the suite has “deceptive” names. Previous Transportation Secretary Pete Buttigieg was one of those federal-level employees who had an issue with the names “Autopilot” and “Full Self-Driving.”
Tesla sued the California DMV over the ruling last week.
News
Tesla workers push back against Giga Berlin unionization
“IG Metall did not succeed in Giga Berlin‘s works council election earlier today. The union share was reduced from nearly 40% in 2024 to 31% in 2026! This is a clear message by the Giga Berlin team towards an independent co-determination! The list called Giga United, led by the current chairwoman, Michaela Schmitz, received the most votes with more than 40%! Good news for Giga Berlin!”
Tesla workers pushed back against unionization efforts at Gigafactory Berlin, and over the past few years, there has been a dramatic decrease in interest to unionize at the German plant.
Gigafactory Berlin Plant Manager André Thierig announced on Wednesday that IG Metall, the European union group, saw its share reduce from 40 to 31 percent in 2026 as employees eligible to vote on the issue. Instead, the Giga Berlin team, known as Giga United, received the most votes with more than 40 percent.
BREAKING! 🚨
IG Metall did not succeed in Giga Berlin‘s works council election earlier today. The union share was reduced from nearly 40% in 2024 to 31% in 2026!
This is a clear message by theGiga Berlin team towards an independent co-determination!
The list called Giga…
— André Thierig (@AndrThie) March 4, 2026
Thierig gave specific details in a post on X:
“IG Metall did not succeed in Giga Berlin‘s works council election earlier today. The union share was reduced from nearly 40% in 2024 to 31% in 2026! This is a clear message by the Giga Berlin team towards an independent co-determination! The list called Giga United, led by the current chairwoman, Michaela Schmitz, received the most votes with more than 40%! Good news for Giga Berlin!”
There were over 10,700 total employees who were eligible to vote, with 87 percent of them turning out to cast what they wanted. There were three key outcomes: Giga United, IG Metall, and other notable groups, with the most popular being the Polish Initiative.
The 37-seat council remains dominated by non-unionized representatives, preserving Giga Berlin as Germany’s only major auto plant without a collective bargaining agreement.
Thierig and Tesla framed the outcome as employee support for an “independent, flexible, and unbureaucratic” future, enabling acceleration on projects like potential expansions or new models. IG Metall expressed disappointment, accusing management of intimidation tactics and an “unfair” campaign.
The first election of this nature happened back in 2022. In 2024, IG Metall emerged as the largest single faction with 39.4 percent, but non-union lists coalesced for a majority.
But this year was different. There was some extra tension at Giga Berlin this year, as just two weeks ago, an IG Metall rep was accused by Tesla of secretly recording a council meeting. The group countersued for defamation.
Tesla Giga Berlin plant manager faces defamation probe after IG Metall union complaint
This result from the 2026 vote reinforced Tesla’s model of direct employee-management alignment over traditional German union structures, amid ongoing debates about working conditions. IG Metall views it as a setback but continues advocacy. Tesla sees it as validation of its approach in a competitive EV market.
This outcome may influence future labor dynamics at Giga Berlin, including any revival of expansion plans or product lines, which Musk has talked about recently.
News
SpaceX President Gwynne Shotwell details xAI power pledge at White House event
The commitment was announced during an event with United States President Donald Trump.
SpaceX President Gwynne Shotwell stated that xAI will develop 1.2 gigawatts of power at its Memphis-area AI supercomputer site as part of the White House’s new “Ratepayer Protection Pledge.”
The commitment was announced during an event with United States President Donald Trump.
During the White House event, Shotwell stated that xAI’s AI data center near Memphis would include a major energy installation designed to support the facility’s power needs.
“As you know, xAI builds huge supercomputers and data centers and we build them fast. Currently, we’re building one on the Tennessee-Mississippi state line. As part of today’s commitment, we will take extensive additional steps to continue to reduce the costs of electricity for our neighbors…
“xAI will therefore commit to develop 1.2 GW of power as our supercomputer’s primary power source. That will be for every additional data center as well. We will expand what is already the largest global Megapack power installation in the world,” Shotwell said.
She added that the system would provide significant backup power capacity.
“The installation will provide enough backup power to power the city of Memphis, and more than sufficient energy to power the town of Southaven, Mississippi where the data center resides. We will build new substations and invest in electrical infrastructure to provide stability to the area’s grid.”
Shotwell also noted that xAI will be supporting the area’s water supply as well.
“We haven’t talked about it yet, but this is actually quite important. We will build state-of-the-art water recycling plants that will protect approximately 4.7 billion gallons of water from the Memphis aquifer each year. And we will employ thousands of American workers from around the city of Memphis on both sides of the TN-MS border,” she noted.
The Ratepayer Protection Pledge was introduced as part of the federal government’s effort to address concerns about rising electricity costs tied to large AI data centers, as noted in an Insider report. Under the agreement, companies developing major AI infrastructure projects committed to covering their own power generation needs and avoiding additional costs for local ratepayers.