Tesla Production Hits All-Time High-But Still Misses Model 3 Targets

Ruben Fields
April 6, 2018

On the other hand, the automaker also confirmed it will not meet the Q1 2018 production target it had set for the popular model.

24,728 of the cars manufactured were Model S and Model X vehicles, down 3,592 from the 28,320 luxury vehicles that Tesla pushed out in Q4 2017.

At the moment, the Tesla Australia website says orders placed now will be delivered in the next "12 to 18 months".

Bulls can point to record vehicle production in the quarter.

Tesla said it is planning further steps to improve capacity and, as a result, anticipates Model 3 production to increase "rapidly" in the next three months towards its target of 5000 per week. "I move my desk around to wherever the most important place is in the company at that time..."

Tesla Inc. fortunes took another hit following a rocky weekend which saw the electric automaker's stock price (NASDAQ: TSLA) fall just over five percent when markets reopened on April 2, with investors anxious about the company's finances and production capabilities.

This morning's news, however, seems to have assuaged investors. Tesla's stock fell by 22 percent in March, the steepest monthly drop since December 2010, the year the company went public.

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Tesla announced a production target of 5,000 Model 3 sedans per week by the end of this year's second quarter.

"So if they're on track, even 2,500 units per week within the next few weeks or months still puts them relatively close to their initial guide and well on the way of being cash flow sufficient by means of the Model 3".

The production numbers, while short of Tesla's own target, are far above the 793 Model 3s built in the final week of a year ago. In the next seven days, we expect to produce 2,000 Model S and X vehicles and 2,000 Model 3 vehicles. That's 480 beneath what it promised, but possibly better than expected given rumors that circulated in advance of the Q1 deadline.

Heading into the final week of the quarter, a Tesla executive urged line workers at the company's sole auto-assembly plant in Fremont, California, to safely ramp up Model 3 output to more than 300 a day and "prove a bunch of haters wrong".

The quarterly production rate of the Model S, X and Model 3 combined increased by 40% from the previous fourth quarter.

Consumer Edge Research Senior Analyst Jamie Albertine also expressed his optimistic expectations for the Elon Musk-led company. The company operates in two segments, Automotive, and Energy Generation and Storage. Most companies are bound by the limits of real estate, labor, and capital and will not have exponential growth forever.

Tesla has once again missed its production target for the Model 3, but things are improving in the brand's push for mass-market success.

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