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Tesla Reduces Model S and Model X Production; Shares Drop

  • Change adds to concerns about demand for higher-priced models
  • Company announced job reductions, price cut earlier this month
Tesla Reduces Model S and Model X Production
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Tesla Inc. is reducing production of Model S sedans and Model X crossovers, adding to concerns about demand for the electric-car maker’s higher-priced and more profitable vehicles. The shares dropped on the news.

Tesla has set substantially lower daily production targets for the Model S and Model X, according to current and dismissed employees who asked not to be identified discussing plans that aren’t public.