Tesla halts Model S production

A Tesla spokesman, Simon Sproule, announced that the electric car maker is suspending production of the Model S sedan for two weeks. The Fremont, CA plant will resume assembly on August 4th.

The break will allow Tesla to make $100 million worth of upgrades to not only ramp up Model S production by 25% (to 1,000 units per week), but also accommodate the upcoming Model X crossover.

Tesla Model S

Photo: Tesla

“This represents the single biggest investment in the plant since we really started operations and enables us for higher volumes,” Sproule told Automotive News. “It gets us ready to build X and to do it on the same line as the S.”

Tesla president and CEO Elon Musk wants to sell 35,000 Model S sedans globally in 2014, which would represent a 56% increase from 2013.

In related news, Tesla is preparing to announce the location of its new battery factory, which will cost approximately $5 billion to build and employ as many as 6,500 people. Whether it’s in Arizona, California, Nevada, New Mexico, or Texas, Musk said the plant is needed to reduce the cost of lithium-ion cells by at least 30% — a crucial step in the company’s plan to launch the Model 3 compact sedan in 2017.

Source : autonews.com

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