Tesla called the first week of pre-orders “the week that electric vehicles went mainstream”.
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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.
Electric auto maker Tesla says it is going to hugely accelerate production of its upcoming Model 3 mass-market vehicle.
The new target would boost production to a faster growth rate than Ford Motor Co. managed to achieve in the early 1900s.
“Tesla collected an estimated $400 million from refundable deposits on the Model 3, but may need to seek out more after announcing a 50 percent increase in capital expenditures”.
“Given the demand for Model 3, we have chose to advance our 500,000 total unit build plan (combined for Model S, Model X, and Model 3) to 2018, two years earlier than previously planned”, Tesla said. That loss came on the heels of a 7% gain late Wednesday after the electric-car maker reported a narrower-than-expected first-quarter adjusted loss and quarterly sales in line with Wall Street expectations. Still, TSLA states that it is on track to bring its Model 3 cars to market by the end of 2017.
For that number to increase Musk says that he would only approve components for the Model 3 if it doesn’t adulterate the ease of building the vehicle and the quality of its construction.
Tesla’s loss rose 84 per cent to US$282 million in the first quarter as it struggled with parts delays for the Model X SUV.
Tesla has set July 1 next year to start production of the Model 3 and wants to make 100,000 to 200,000 cars in the second half of the year.
Tesla’s letter to shareholders and customers mapped out an ambitious production schedule, and not just for the Model 3.
But despite all that he has already accomplished with his electric vehicle company, there is no shortage of folks who are skeptical about Musk’s intermediate-term goals.
This year, Tesla is sticking to its 80,000 to 90,000 delivery guidance. The company acknowledged the shipment of the Model X was insufficient to meet demand.
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Tesla confirmed, its vice president of production Greg Reichow, and vice president of manufacturing Josh Ensign, are leaving the company. It now plans to build 500,000 total units (combined for Model S, Model X, and Model 3) in 2018, two years earlier than previously planned.
