Tesla Motors Inc. is expected to cut its production of the “bootleg” Tesla Model S sedan by a third in 2019, as it aims to save as much as $2.4 billion by 2018.
The company announced the decision Friday, citing production shortages that are part of an industry downturn.
“We are making a fundamental shift in our business model that is in keeping with our philosophy to be innovative and sustainable,” Elon Musk, Tesla’s chief executive officer, said in a statement.
Musk said the company expects to save up to $2 million a day on production of its Model S. Tesla said it expects to be able to reduce the cost of production by a few hundred dollars a day for Model S customers who bought them after the end of 2019.
Musk’s company has said it has had supply shortages for some of its cars for several years and that production will eventually be reduced.
Musk told investors at the end the company is now focused on the “next generation” of Model S, the next-generation car with a smaller battery and a better driving experience.
The “next-generation” Tesla is expected in 2020.
Model S buyers have complained that the car’s battery doesn’t last the journey and that it has trouble maneuvering in tight urban driving environments.
In December, Tesla began selling the Model S in Japan, but it didn’t start selling cars in the U.S. until the end in 2019.
It is expected that the company will sell at least 10,000 cars in Japan.
Tesla will not announce a timetable for making the Model 3, the smaller, battery-electric version of the Model 2.
Musk, who was the chief executive of Tesla from 2011 to 2016, said he will leave his role as chief executive to focus on the company’s future.
The stock fell more than 20% on the news.
Tesla is the only carmaker in the world that has no internal combustion engine and is largely reliant on batteries.
The Model S and Model X have been Tesla’s most popular cars, selling more than 14 million each in 2017 and 2018.
Tesla plans to start selling the next model, the Model X, next year.