Tesla Ambition Sees a Positive Result
It’s no secret that Tesla has set its sights high and soon which can often lead to disastrous results. The goals set by the company that won’t put a gas engine in anything is to be ab le to produced cars at the rate of 500,000 per year by 2018. Considering we’re already halfway through 2016 that timeframe is become shorter by the day and the production of their third model needs to begin soon if they intend to be able to fulfill most of the deliveries of the new Model 3 by 2018 as well.
Tesla has been a company that has done things differently from the beginning. Based in the Silicon Valley area of California, this is a car manufacturer that is surrounded by tech companies and the cars produced are some of the most technologically advanced. This has been the goal from the beginning, building the most technologically advanced electric vehicles in the world and so far Tesla has been on track to do just that. The first production car made is the Model S, which has been an admirable beginning with a significant following and over the air upgrades to the software to give us a new way of driving and receiving improvements.
Not only are the products and location different from most manufacturers, Tesla sells their cars in a different way as well. They don’t use a typical dealer network with cars on the lot for you to choose from and in some cases this sales style has been met with regulations that have prevented the vehicles produced by Tesla to be sold in some areas. This hasn’t slowed the company down one iota as they continue to see increased interest and sales with their products.
The second vehicle produces is the Model X which is a dynamic and attractive luxury SUV that offers signature styling and features such as the Falcon Wing rear doors. While this vehicle has given Tesla some fits with complicated items that need to be addressed, it is an SUV that has still had a strong response from the upscale community that wants to enjoy the drive of the Model X.
Most recently Elon Musk, CEO of Tesla has announced a third model called the Model 3. This is to be an affordable sedan that will cost around $35,000 for each one. In order to put your name on the list for a Model 3 preorders were opened up and required only $1,000 charged in order to hold your place on the list to have this great new affordable vehicle. This ordering and vehicle were met with extreme preorder with nearly 400,000 customers on the list. Since Tesla has never produced even as much as 100,000 vehicles in a year this could present a problem.
Elon Musk seems to be confident the company can eventually reach the goal set of 500,000 vehicles in a year by 2018 and the results from the second quarter finally show some positive progress toward this goal. Tesla was able to produce 18,345 vehicles in quarter two of this year and 9,000 of them were built in the last four weeks of the quarter. This is over 2,000 vehicles a week, which is a number Tesla has never been able to achieve in the past, at least not consistently. If the company can continue to increase this number over the next year and a half they have a chance of reaching the 500,000 a year goal, but it will mean being able to produce nearly five times that number on a consistent basis.
As for the vehicles that were delivered, 14,370 were delivered in quarter number wo with over 5,000 on ships and trucks that are ready to be turned over to customers in the early part of quarter number three. The mix of vehicles delivered was 9,745 Model S EVs and 4,625 Model X SUVs. This is a drop of two quarters in a row for the Model S, but with increased production this should come back and not be a challenge for Tesla. With so many doubts that have been surrounding this company recently it’s great to see some positive progress toward the ability to fill all the orders they have for the Model 3 in a timely manner.