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Tesla Motors production capacity to reach 500k units in 2018

Tesla Model 3 Photos

All the three models in the portfolio have huge order backlogs.

Buoyed by the unprecedented response for the recently unveiled Tesla Model 3 electric sedan, the American automaker has advanced its production targets by two years. Tesla Motors production capacity was initially supposed to reach 500,000 units per annum by 2020 but in an attempt to capitalize on the huge demand, the company is planning to achieve this target in 2018 itself.

This information was revealed in the company’s shareholders letter. In a conference call with the shareholders, Tesla CEO Elon Musk also stated that by 2020, the company could be manufacturing nearly million vehicles a year. As far as the current rate of production is concerned, Tesla is planning to deliver 80,000 to 90,000 vehicles this year.

2017 Tesla Model S

Tesla introduced the updated Model S shortly after unveiling the Model 3.

The orders for Model 3 is said to have exceeded 400,000 already, creating a huge demand for added production capacity. It is to be noted that the Model X and Model S are sitting on huge backlogs as well. The company says that it produced 2,659 units of the Model X in the first quarter of 2016 as against 507 units in last quarter of 2015. The CEO feels confident that the rate will soon accelerate to 2,000 units a week.

Tesla Model X 2016 Geneva Motor Show

Production rate of Model X will be accelerated shortly.

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Addressing concerns over quality issues in the Model X, Elon Musk mentioned in the shareholders letter that he has moved his desk near the end of the production line and even placed a sleeping bag there so that he can personally have a tab on the product quality. The entrepreneur is known for moving his desk to wherever he is most needed within the company.

Tesla Model 3 – Photos

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