Tesla has shrunk its Model S and X production hours in order to focus on the Model 3
- Tesla has reduced its production hours for the Model S and X in a move related to its mass layoffs last week.
- The cuts come after it stopped offering the cheaper, 75 kWh version of the car.
- A spokesperson said the move will allow Tesla to put more focus into building the Model 3.
- Shares fell as much as 5% after the news. Follow the stock in real-time here.
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.
"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.