SAN FRANCISCO — Tesla Inc. said it reduced the amount of hours it’s producing Model S sedans and Model X crossovers after getting rid of the option for customers to order the vehicles equipped with entry-level batteries. The shares dropped on the news.
CEO Elon Musk announced earlier this month that Tesla would no longer take orders for the 75 kilowatt hour version of the Model S or Model X starting Jan. 14. At that time, there was at least a $15,000 difference between the 75D and 100D versions for the two models.
“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,” Tesla said in an emailed statement in response to an inquiry from Bloomberg News. “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.”
Tesla shares dropped 5.1 percent to $283.51 as of 12:59 p.m. Wednesday in New York trading. The stock is trading at the lowest intraday since Oct. 23.
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