It’s because of the strong interest in Model 3 that Tesla says it’s moving up its 500,000-cars-a-year production capacity to 2018.
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Tesla produced 15,010 vehicles in Q1 2016, including 12,851 Model S sedans and 2,659 Model X SUVs. The company began accepting $1,000 deposits for the vehicle last month, and received more than 325,000 orders in the first week. Since the reveal some 400,000 Model 3’s have been pre-ordered and just happened to compel Tesla to change that plan.
“We take it very seriously, and we need to solve it if we’re going to scale and scale rapidly”, he said.
“Whether that is wise is another question”.
The electric vehicle maker announced the lower-cost Model 3 sedan, starting at $35,000 before incentives, in March.
Tesla’s loss rose 84 percent to $282 million in the first quarter as it struggled with parts delays for its new Model X SUV.
This information was revealed in the company’s shareholders letter.
Tesla’s shares were up 4.7 per cent in after-hours trading after closing down 4.2 per cent.
Tesla confirmed, its vice president of production Greg Reichow, and vice president of manufacturing Josh Ensign, are leaving the company.
Tesla would also be tougher on suppliers who can not meet its deadlines, he said.
Reichow is taking a leave of absence after a successor is found. The company has been spending money to increase its manufacturing facilities. The CEO also expressed interest in setting up assembly lines in Europe in China after maximizing production at its Fremont plant, to satisfy Tesla demand more efficiently in these regions. After it saw thunderstorm of Model 3 reservation, the company chose to achieve the goal by 2018 via the new Build Plan.
Among the snafus cited: problems with the vehicle’s “falcon wing” doors either not opening or not shutting; difficulties with the car’s self-driving mechanism becoming “confused”; “double vision” distortions from the curved windshield; and insufficient heating.
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Model X will be in all Tesla stores by the year’s end, according to Tesla.
