Tesla has faced heavy criticism in the past for not nearly making enough Model 3 cars to reach a profitable scale, but the unsustainable production bursts are now a thing of the past.
According to a source familiar with the matter, Tesla is making a strong entry into the fourth quarter. The automaker has produced over 11,500 cars so far in October, which included almost 7,000 Model 3s vehicles.
Things are finally looking up for the embattled automaker after it started its fourth quarter strong, producing over 11,500 cars so far in October
Strongest Quarter to Date
Things are finally looking up for the embattled automaker after it started its fourth quarter strong, producing over 11,500 cars so far in October. The news was first reported by Electrek which has closely tracked Tesla’s production over the past few months.
According to its report, Tesla managed to produce over 80,000 vehicles last quarter, which was one the best one the company has had so far. It managed to roll more than 53,000 Model 3s cars off the production line in the third quarter, as promised by CEO Elon Musk.
The company ended the quarter with its strongest week to date, producing over 5,300 Model 3s, a record-breaking number that sent the investors into a tizzy.
As the company enters a challenging period of expansion, it is facing new battles from the SEC and Wall Street. CEO Elon Musk recently faced serious charged for promoting a misleading tweet about plans to take Tesla private.
Both Musk and his company were slapped with $20 million fine each. Furthermore, SEC asked him to step down from his position as the Chairman, a move that could be benefit Tesla in the future, especially now that it is gearing up for its toughest quarter so far in terms of production deadlines.
Conflict with SEC
Tesla is planning to improve production even more throughout the last quarter so we might see a modest improvement in the figures by the end of 2018
Investors are questioning whether Tesla will be able to maintain its high production levels amid the company’s fallout with the SEC, and so far the outcome looks promising. Even after entering a new quarter, the carmaker hasn’t slowed down production.
On the contrary, it has ramped it up to almost 6,000 vehicles per week. Tesla was able to make 11,500 cars in the first two weeks of October, including its most recent Model 3 as well as older Model S and Model X. A total of 7,400 Model 3s cars were produced during this period, according to Electrek’s report.
Most experts were anticipating an early quarter slowdown after it was reported that Tesla had to create a makeshift production line in Gigafactory’s parking lot to meet the self-imposed quota for last quarter.
Many thought that going forward, Tesla would struggle to maintain such unsustainable production levels, but the company is yet to report any issues with production or delivery in the fourth quarter. With that said, it’s too soon to assume that it will be a smooth sail for the automaker for the remaining three months of its fiscal year.
Higher Production Ahead
According to a source familiar with the matter, Tesla is planning to improve production even more throughout the last quarter so we might see a modest improvement in the figures by the end of 2018.
The company will earn its official earnings report for the third quarter next month, which will give investors a better idea about what to expect from the carmaker in the future.
The numbers for the first two weeks of October are indeed an impressive feat for a company that has a history of missing production deadlines.
Of course the company has yet to achieve its goal of 6,000 cars per week, which Musk promised for the month of August, but it seems like Tesla has forgone the goal and is instead focusing on reaching profitability instead of mass production.
The company hasn’t reported profitability in a single quarter ever since it was founded, but with a promise of production ramp-up, it could soon show positive numbers by the end of the fourth quarter.
The company is taking a number of steps to increase production from international expansion to upcoming base version. If things go according to plan, Tesla could easily hit 7,000 to 8,000 cars in weekly production.
Tesla recently made history by selling 100,000 Model 3 vehicles, making its latest car the fastest selling EV model ever.
