DETROIT-Electric vehicle maker Tesla Inc. increased production of its Model 3 mass-market auto in the first quarter but still fell far short of the numbers it promised last summer. It expects to produce 4,000 vehicles next week: 2,000 Model S and X vehicles, and 2,000 Model 3s. The Californian auto company has been under the spotlight over just how quickly it can ramp up production of its most affordable vehicle, the Model 3, after Tesla conceded that its initial goal had been too aggressive.
The company built 34,494 vehicles during 2018's first quarter - 9,766 of which were Model 3s.
Production figures for the first three months of the year, released today, show that in the last seven days, Tesla made 2,020 Model 3 sedans. "As a result, Tesla does not require an equity or debt raise this year, apart from standard credit lines". With news of the Q1 results, Tesla shares increased almost 7 percent early Tuesday before leveling off at around a 3.4-percent increase, reports CNBC.
This story will be updated.
Tesla clearly needs to boost production fast.
The Model 3 is now behind in its production and Musk wants to be on hand at all times to help fix any issues that occur on the factory floor. The company, according to Bloomberg, which has been tacking Model 3's production rate, has been assembling about 1,276 units a week for the last couple of weeks. With the continuous Model 3 "production hell', Tesla is likely to find fresh funding more expensive and more hard to get, according to analysts".
Our final estimate came in just 5% less than Tesla's reported numbers, arguably validating the methodology. However, huge hurdles remain as Palo Alto, California-based Tesla tries to turn the page on one of the most hard chapters in its short history.
As for the Model 3, Tesla stated in its 4Q sales update (Tesla Q4 2017 Vehicle Production and Deliveries) that its Model 3 production "extrapolates to over 1,000 Model 3's per week". "Without fresh funds, it's tough to see how Tesla achieves the spectacular growth still priced into its shares".
"Our initial customer satisfaction score for Model 3 quality is above 93 percent", Tesla said, "which is the highest score in Tesla's history".
The Model X driver also had about 5 seconds and 150 metres of an unobstructed view of the concrete divider with the crushed attenuator but no action was taken by the driver according to the vehicle logs.
Tesla is trying to calm those fears by releasing its first quarter vehicle production and delivery statistics.
Musk also spoke of how he had trusted Doug, but now the policy had to be changed in order to benefit the company.
These numbers are crucial for the automaker as cash reserves have been said to only be enough to last through the year and so cash flow is king for Tesla.