Correction: Tesla to cut production hours for Model S and X

(Reuters) - This story corrects to remove extraneous word 'layoffs' in paragraph 5 Tesla Inc said on Wednesday it is reducing production hours for higher-priced Model S and Model X cars, just days after saying it would cut jobs as the electric carmaker looks to make more affordable versions of the Model 3 sedan.

Reuters January 24, 2019 04:05:48 IST
Correction: Tesla to cut production hours for Model S and X

Correction Tesla to cut production hours for Model S and X

(Reuters) - This story corrects to remove extraneous word "layoffs" in paragraph 5

Tesla Inc said on Wednesday it is reducing production hours for higher-priced Model S and Model X cars, just days after saying it would cut jobs as the electric carmaker looks to make more affordable versions of the Model 3 sedan.

The shares of the company fell 4.2 percent to $286.09.

Tesla also faces the unenviable choice of raising prices at the risk of losing customers or slashing costs by thousands of dollars per vehicle as the electric vehicle tax break started to phase out from earlier this month.

Chief Executive Officer Elon Musk had said earlier this month that Tesla will no longer be taking orders for the 75 kWh version of the Model S and X to streamline production.

"As a result of this change and because of improving efficiencies in our production lines, we have reduced Model S and X production hours accordingly," a Tesla spokesperson said in an email.

"These changes, along with continuing improvements, give us the flexibility to increase our production capacity in the future as needed."

The company said it will provide more details on the earnings call scheduled for next Wednesday.

A reduction in tax credit added $3,750 to the price of Tesla's electric cars starting Jan. 1. Musk had said the need for lower-priced versions of Model 3 will become even greater from July, when the U.S. tax credit again drops in half.

This would add $1,875 to the car's price tag. The tax credit is set to go away entirely at the end of 2019.

(Reporting by Sayanti Chakraborty and Sonam Rai in Bengaluru; Editing by Arun Koyyur)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.