News - Tesla
Tesla Model 3 production ramps up
Q2 production figures indicate Tesla Model 3 gaining momentum in US
3 Jul 2018
ELECTRIC vehicle-maker Tesla has released its American vehicle production and delivery statistics for the second quarter, with the new Model 3 medium sedan overtaking combined production of the Model S and Model X for the first time.
After being plagued by production volume problems that saw Tesla struggle to meet demand for the new car, Model 3 production nearly tripled its quarter one figures, with 28,578 examples rolling off the production line.
The weekly production rate for the brand’s volume seller also more than doubled during Q2, while overall production totalled 53,339 vehicles, a 55 per cent increase over Q1.
Tesla’s goal of 5000 Model 3s per week was also met during this quarter, helped by the addition of a new production building at its Fremont, California facility dubbed GA4, which added roughly 20 per cent of total Model 3 production for Q2. The last week of Q2 saw a combined 6944 vehicles produced, 5031 of which were the Model 3.
The car-maker anticipates Model 3 production to increase to 6000 units by late August, and believes it can achieve positive net income and cash flow in Q3 and Q4 despite a weaker US dollar, even if president Trump’s proposed tariffs for imported vehicles and parts is upheld.
Tesla Australia told GoAuto that the increase in production will not change the anticipated arrival date for the Model 3 in Australia, with production set to commence in mid-2019.
Deliveries in Q2 totalled 40,740 vehicles, with the split made up of 18,440 Model 3s, 10,930 Model S’ and 11,370 Model Xs. Tesla said that both orders and deliveries for Model S and Model X were higher than in Q2 2017, and that it is aiming for 100,000 combined deliveries for the year.
Additionally, it said 11,166 Model 3s and 3892 examples of the Model S and X were in transit at the end of Q2, due to increased production at the end of the quarter.
Roughly 420,000 reservations still exist for the Model 3, with 28,386 examples delivered to date.
Tesla acknowledged in a press release that the past year has been arguably the toughest in its history, but it wsa “incredibly proud” of its employees for achieving production of 5000 Model 3 weekly, with CEO Elon Musk taking to Twitter to thank the team.
In other news, Tesla senior vice president of of engineering Doug Field has stepped down after five years working with the company.
A number of high-ranking employees have left Tesla this year, including the chief accounting officer, vice-president of finance and head of sales, with some poached by other companies and others standing down.
Last month the company announced it will cut nine per cent of its workforce to help make the company more profitable.
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