Tesla did not respond to any questions for the reason for the production decision.
Tesla actually sold slightly more vehicles to customers during the first three months of the year than it built, using vehicles it had in inventory at the end of of 2020. Its deliveries totaled 182,780 of the Model 3 and Model Y, and 2,020 of the Model S and Model X.
“We’re super excited to announce the new Model S and Model X … are in production now and will be delivered in February,” he said at that time. “The Model S… we’re actually in production now… The Model X a little later.”
“The S and X are on a slow sunset path,” Ives said. “The demand for those models has been exhausted. It was telegraphed [Tesla] would build a negligible number of those in the quarter. Based on demand, it makes sense they’re were going to bet their chips on the Model 3 and Model Y. Tesla is now about those models, and the [upcoming] Cybertruck.”
But Johnson said Tesla likely was making as much as five times as much profit on each of the more expensive Model S and Model X than on the Model 3 and Model Y.
“They won on volumes, yet are getting killed on margins,” he said.
But Tesla is facing more competition for its less expensive models as traditional automakers offer their own new electric vehicles.