Tesla Sees Model 3 Production Rate Improving by Q2 2018

Tesla Sees Model 3 Production Rate Improving by Q2 2018

The company incurred a loss of around $675 million, its biggest ever quarterly loss.

"It's mostly about how Tesla's going to tackle these challenges over the next year as they ramp up production". On a call with analysts Musk said that the production is getting back on track.

Late on Wednesday, Elon Musk's electric auto maker said it was still expecting to build 5,000 Model 3 sedans per week by the end of June, a target it set out last month. The quarter after the Model 3 was introduced, Tesla revealed that it had only delivered some 266 vehicles. It also delivered 28,425 Model S and Model X, for a total of 29,967 deliveries.

Model 3 production issue escalate expenses, offsetting record revenues.

It also has plenty of money in the bank - US$3.4bn to be precise - which will allow the company to continue to invest heavily in its operations for a little while yet. "This enabled us to reduce our finished-goods inventory to the lowest level in about 18 months". It discontinued the Roadster and moved on to the second phase of its master plan, building two native EVs, the now-famous Model S and Model X. The two vehicles went on to win just about every award and accolade in existence, including being recognized as the "safest auto ever tested" by the NHTSA and the "best auto ever tested" by Consumer Reports. For the entire year, gross revenue stood over $11.7 billion, a significant increase from the $7 billion posted during 2016.

The Model 3's top speed is 130 miles per hour and interior features include a 15 inch touchscreen display, a dual zone climate control system, FM/internet streaming radio and Wi-Fi and LTE internet connectivity.

Model 3. Image source: Tesla. There has been an even bigger increase in solar and Powerwall sales. Service capacity more than doubled in 2017, partially due to new locations, but also through a 50 percent increase in productivity of existing service locations, as well as the significant expansion of Tesla's Mobile Service fleet, which now has 230 vehicles. The future for Tesla, and for those of us who write about it, looks as bright as the California sun. The firm's deployment of 129 MWh of energy storage in South Australia will be recognized in the first based on commercial transfer of the site to the customer.

Energy generation and storage revenue decreased 6 percent sequentially. Annual EPS Growth of past 5 years is -13.10%.

2018 will be a transformative year for Tesla, with a high level of operational scaling.

"Model 3 ramp has demonstrated the difficulty of accurately forecasting specific production rates at specific points in time", the company said in an update to shareholders. Deliveries of the two most expensive cars in Tesla's current line-up are expected to reach 100,000 in the year as a whole, that number hamstrung predominantly by the fact that they use the old form-factor batteries. The company has a market cap of $56.89 Billion.

This change in delivery timelines could be a result of demand for the long range option Tesla is likely seeing. It has targeted weekly productions rates of 2,500 by the end of Q1 2018, and then 5,000 by the end of Q2.

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