Tesla made more Model 3s in the last 3 months than in the previous 9 months combined
Hollis Johnson/Business Insider
Hollis Johnson/Business Insider
- Tesla produced more vehicles during the second quarter of this year than in any previous quarter in the company's history.
- The company made more Model 3 sedans than in the previous three quarters combined and hit its goal of producing 5,000 Model 3s in one week.
- The Model 3 is key to Tesla's objective of becoming profitable, and the company said it expects to post positive GAAP net income and cash flow in the third and fourth quarters of this year.
Tesla produced more vehicles during the second quarter of this year than in any previous quarter in the company's history and made more Model 3 sedans than in the previous three quarters combined, the company said in a regulatory filing.
Tesla also hit its goal of producing 5,000 Model 3s in one week, making 5,031 total during the final week of June, along with 1,913 Model S sedans and Model X SUVs. The company's stock increased by as much as 6% in early trading on Monday.
The company made 55,339 vehicles during the quarter, 28,578 of which were Model 3s. Tesla delivered 40,740 vehicles during the quarter, 18,440 of which were Model 3s.
"The level of dedication and creativity was mind-blowing. We either found a way or, by will and inventiveness, created entirely new solutions that were thought impossible," he reportedly said. "I think we just became a real car company...."
Tesla had struggled to ramp up production for the Model 3 since it was launched in July 2017, twice missing deadlines for its goal of producing 5,000 per week. In May 2016, Musk said he estimated the company would make between 100,000 and 200,000 Model 3s during the second half of 2017. However, Tesla only made 2,685 Model 3 vehicles in 2017.
In the past month, the company built a new assembly line outside its factory in Fremont, California, in an open-air structure Musk referred to as "a giant tent." Tesla said the new assembly line was responsible for around 20% of Model 3 production during the final week of June.
The Model 3, Tesla's first mass-market vehicle, is key to the company's objective of becoming profitable, and the company said it expects to post positive GAAP net income and cash flow in the third and fourth quarters of this year. The company said it expects to make 6,000 Model 3s per week by the end of August.
Last week, Tesla began allowing all Model 3 reservation-holders to order their vehicles, though the $35,000 base model is not yet available for order. Reservation-holders can currently choose between the rear-wheel-drive (which starts at $44,000) and all-wheel-drive ($48,000) versions with a long-range battery, and the performance version ($64,000).
Tesla has received over 450,000 pre-orders for the Model 3 since it started taking reservations in March 2016.
Get the latest Tesla stock price here.
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