Tesla has recently announced that it is cancelling the production of right-hand drive Model S and Model X vehicles, citing low demand in certain regions. This move comes as a surprise to many customers who have been waiting for their orders to be fulfilled.
According to the company, customers who have already placed orders for the right-hand drive Model S and Model X will be offered refunds or the option to switch to a left-hand drive version. Tesla has also stated that it will continue to support existing right-hand drive vehicles with parts and service.
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This decision by Tesla is likely due to the fact that most countries drive on the right-hand side of the road, making left-hand drive vehicles more popular. Additionally, the Model S and Model X are older models in Tesla's lineup, and the company may be looking to shift its focus to newer vehicles.
Tesla has informed reservation holders that they will not offer right-hand-drive Model S and Model X vehicles for the foreseeable future. Customers can opt to purchase a left-hand drive model, receive a credit towards a Model 3 or Model Y, or cancel the reservation and receive a full refund. Those who choose to change their reservation for a Model 3 or Model Y will receive a credit of up to $2,175 in Ireland and up to $2,000 in Australia.
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The demand for Tesla's Model S and X has decreased significantly due to their outdated models compared to newer models from startups and established OEMs. In 2022, Tesla built 71,777 of these models but only sold 66,705, and in Q1 2023, they built 19,437 but almost half remain unsold.
Despite this setback, Tesla has been making strides in the electric vehicle market. Its latest vehicle, the Model Y, has been well-received, and the company is working on developing new technologies such as autonomous driving and advanced battery systems.
