Tesla Motors says it will ramp up production of its best-selling Model 3 electric auto much more quickly than planned, with a target of producing 500,000 automobiles starting in 2018 rather than 2020.
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A day after Tesla shares jumped 7% in after-hours trading on Wednesday following a narrower first-quarter loss by the company that analysts had expected, Musk was helping to unwind the gains with what some punters view as an over-ambitious plan.
Tesla recently reported first-quarter earnings, and they were better than expected: Tesla lost less money than analysts thought the company would. About 93 percent of the Model 3 reservations have come from new Tesla customers, the company said.
Tesla said orders for its Model S were up 45 percent compared to a year ago. In spite of losing the two production bosses, Musk motors still reckons it will deliver between 80,000 and 90,000 vehicles this year.
Musk also called for manufacturing experts to join the company.
Turns out the Model 3 isn’t going to be Tesla’s most affordable model.
Musk also said he plans to start producing more auto components in-house – another reason he’s investing more money in Tesla’s manufacturing capabilities. Musk said customers should order now if they want to receive their vehicle in 2018.
In a conference call with the shareholders, Tesla CEO Elon Musk also stated that by 2020, the company could be manufacturing almost million vehicles a year. Despite beating the consensus estimates and upgrading its long-term production/deliveries plans, the Street remain bearish on the stock on doubts over the CEO Elon Musk’s optimism and potential capital raise in the near future.
Analysts polled by Thomson Reuters estimated the company would post revenue of $1.6 billion during the first quarter. 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.
Was Reichow’s departure linked to Model X glitches?
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Model X will be in all Tesla stores by the year’s end, according to Tesla. He continued by saying production tooling for Model 3 will be ready by April 2017, with validation taking place through July.
