Tesla Motors is halting production of its assembly plant in Fremont, Cali. to modify for the production of the Model X. The $100 million modifications will allow Tesla Motors to build the crossover SUV on the same line as the Model S sedan. Tesla’s single biggest investment in the Fremont plant will also increase output for the Model S.
According to Tesla spokesperson Simon Sproule, the goal is to boost production by 25 percent when the factory reopens on August 4th. In 2013, Tesla sold more than 22,000 Model S vehicles and plans to deliver at least 35,000 Model S vehicles this yearwhich is roughly a 56 percent increase.
Tesla aims to deliver the Model X to customers by spring 2015, but Model S sales will temporarily take a hit as the company prepares to lay the foundation for the new family-oriented SUV. Once the upgraded facility is completed, Tesla will be able to meet both domestic and Chinese demand for the Model S.