Tesla has set a Model 3 production date of July 1, 2017.
Advertisement
Tesla had been struggling to ramp up production of its cars including its newest Model X SUV.
NASDAQ:TSLA) stock is trading in the green in today’s after-market trading after the company disclosed financial results for the first quarter of fiscal year 2016 (1QFY16).
Elon Musk, Tesla CEO, gave credit to Greg Reichow and his team for their work on developing a manufacturing organization from the ground up, and for “making Model S and Model X a reality”.
Since Tesla’s Model 3 will have a starting price of $35,000, Musk confessed that he wanted their next lineup to be more pocket friendly, wherein every consumer would be able to afford their own electric vehicle.
The aggressive push is a response to the widespread interest in its mass-market Model 3, which Tesla claimed was “the biggest consumer product launch ever”.
Musk reaffirms his position during the earnings call that the Model X was designed with a lot of “lot of bells and whistles”, and advanced technologies that weren’t necessarily needed, but at no expense to quality.
Tesla said more than 325,000 people put down a $1,000 deposit to reserve the auto in the first week after the unveiling.
The BBC reported that “capital expenditure – money spent to grow the company – would probably increase by 50%”.
Moving ahead, the company plans on producing 20,000 vehicles during 2QFY16, which reflects a 30% sequential increase. Tesla said on Wednesday that two top manufacturing executives were leaving the company. During the most recent quarter, Tesla delivered 14,810 vehicles, less than the 16,000 cars it said it would deliver.
This year, Tesla is sticking to its 80-90,000 delivery guidance.
Reichow will remain at Tesla until someone if found to replace him, according to the company. Musk realizes that. During the earnings call, he declared that Tesla aims to be the leader not just in electric vehicles but also in auto manufacturing.
Advertisement
Total revenues were $1.15 billion compared to $939.88 million, a year ago.
