It appears that the EV company’s goal for 500,000 productions of segments is causing worry for the stakeholders.
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Tesla has said it is bringing its build program forward by two years to accommodate higher orders for the Model 3 and raise overall volume to 500,000 units a year.
On Wednesday, shares of Tesla popped as high as 8% in after-hours trade after the company reported positive earnings for its fiscal first quarter.
The electric auto company said previous delays of its Model X sport utility vehicle led to financial loses and now it has sped up productions of the model. The same model has 325,000 $1,000 deposits by two years to 2018, according to the same post.
Electric auto maker Tesla says it is going to hugely accelerate production of its upcoming Model 3 mass-market vehicle.
In its quarterly results, Tesla said revenue in the past quarter climbed to $1.6 billion in a 45% increase from the same period a year earlier, while the company’s net loss narrowed 34% to $75 million. However, it also added that it is making significant progress in increasing production and plan to continue increasing total vehicle production to support over 50,000 deliveries in the second half of 2016. That number will include the Model 3, due in late 2017 with a sticker price starting at $35,000. Tesla Motors (NASDAQ:TSLA) said it planned to sell 500,000 cars by 2020 and Wall Street is still trying to fathom out how the firm will achieve that feat. “For others, expect a choppy ride with sentiment a large driving factor”.
Musk said the company was unlikely to develop the supply chain for Model 3 components in time to meet the July 1, 2017 deadline. After being with Tesla for more than five years and leading its production team for the past three, Reichow plans a leave of absence to “have a well-earned break”, a Tesla spokesman said in response to an AFP inquiry. Tesla is a company known for speed but it’s also a company with a reputation for being late.
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Chief executive and founder Elon Musk provided an update for analysts this week, confirming the unprecedented level of customer interest in the auto is continuing and detailing plans to rapidly expand the company’s manufacturing capacity.
