Tesla is determined to build 5 lakh cars of the mass market all electric sedan in 2018, two years ahead of schedule.
Advertisement
Tesla has released its first quarter 2016 earnings report, revealing the company took a big loss of $282 million during the first three months of the year. Not only is that multiple times what other model cars Tesla has produced in 2015, the company is also now talking about one million motors of the new Model 3 by 2020. Shares of Tesla stock surged as much as seven percent in after-hours trading following the announcement. Looking out beyond Q2, the company said it remains confident that it can deliver 80,000 to 90,000 new Model S and Model X vehicles in 2016.
In its quarterly newsletter to shareholders, Tesla said: “Our objective with Model 3 is to create the world’s best auto with a base price of $35,000, before any incentives, with a range of at least 215 miles on a single charge”. To help avoid a backlog and meet the 2017 delivery target, Tesla CEO Elon Musk said in a conference call that he wants to produce between 100,000 and 200,000 units next year.
A shortage of parts for its Model X stalled production in January and February.
Excluding items, the company lost 57 cents per share. Analysts on average had estimated a 60-cent loss, according to data compiled by Bloomberg.
“The goal is for the Model 3 to be production ready by July 1st next year”.
Chief executive and founder Elon Musk provided an update for analysts this week, confirming the unprecedented level of customer interest in the vehicle is continuing and detailing plans to rapidly expand the company’s manufacturing capacity. The company has booked more than 400,000 pre-orders, with reservations netting the company more than $400 million in cash.
Analysts polled by Thomson Reuters estimated the company would post an unadjusted loss of $141 million on revenue of $1.6 billion during the first quarter.
Advertisement
Tesla Vice President of Production Greg Reichow and Tesla Vice President of Manufacturing Josh Ensign are heading the exit door, and this news has also been confirmed by a Tesla spokesperson. But the Model X has grown substantially quarter over quarter, producing roughly 500 SUVs in Q4, but over 2600 in Q1.
