According to CNBC, Tesla sent an email to its employees that the Model S and Model X production lines in Fremont, California will be shut down for the holidays starting December 24th and returning January 11th.

That's 18 days, much more than usual and it does not include Model 3/Model Y, so what it might mean?

Well, we guess that the Model 3/Y production will be pushed hard through the end of the year, while the Model S/X lines might be retooled to handle some kind of refresh. The S and X are not selling as well as in the past, especially in Europe, where the company already increased prices and extended waiting times. That is the opposite of what is happening with Model 3 prices in Europe - including the most recent discounts in Germany.

We can guess that both cars will get a significant upgrade to become more competitive (aside from constant upgrades and multiple spec boosts over the years).

Tesla Model X First Drive
Tesla Model X
Tesla Model S
Tesla Model S

In 2017 and 2018, Tesla was selling some 100,000 Model S/X per year, and in 2019 it decreased to less than 67,000. During the three quarters of 2020, sales barely exceeded 38,000 and it starts to be a little low volume for two models.

According to the email, employees will get a full week of pay during the shut down and are offered to eventually volunteer in other areas (like deliveries) to reach Q4 targets.

Here is the email, as transcribed by CNBC:

"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."

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