Tesla Model S sales for the period between July to September 2016 have been revealed. In the US, 9,156 units of Tesla Model S were sold. To put matters into perspective, flagship sedans of Mercedes Benz and BMW, respectively the S Class and the 7 Series, posted sales of 3,634 and 3,138 units respectively for the same period.
US being the leading automotive industry in the world, this shift in trend speaks volumes about where the future is heading. More people are buying electric and advanced cars as against traditional luxury saloons.
In addition to this, buoyed by the unprecedented response for the yet to be launched 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 earlier this year. 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.
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.
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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