Tesla has shrunk its Model S and X production hours in order to focus on the Model 3

Tesla, Elon MuskGetty/Justin Sullivan

Tesla has cut down on its production hours for Model S and Model X vehicles, Bloomberg News first reported Wednesday, stemming from its layoff of more than 3,000 employees on Friday.

The shorter hours come after the company nixed the 75 kWh versions of the cars - up to $15,000 cheaper - that were previously available to buyers, Elon Musk tweeted on January 9.

A Tesla spokesperson said the shrinking of production hours is part of a streamlining effort that will allow it to become more efficient and put more focus into building the Model 3.

Read more: Tesla has received approval to start selling the Model 3 in Europe

"We recently announced that we are no longer taking orders for the 75 kWh version of Model S and X in order to streamline production and provide even more differentiation with Model 3," the spokesperson said in a statement.

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

Tesla's stock price sank as much as five percent immediately following the news.

The company is expected to report its fourth-quarter earnings next week, though it has not yet confirmed a date for that release.

Get the latest Tesla stock price here.
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