Tesla Model 3 makes LA to NY trip in 50 hours

Herbert Rhodes
January 6, 2018

Now, the company says it expects to be producing 2,500 Model 3s weekly in the first quarter 2018, and 5,000 weekly by the end of June. Previously, Tesla was hoping to reach the 5,000/per week rate by the end of March.

Tesla shares were down 3 percent Thursday morning.

That number fell well short of Elon Musk's promise of producing 20,000 Model 3 sedans per month beginning in December.

Tesla ended September with about $3.5 billion cash in hand and projected another $1 billion in capital expenditures during the last three months of the year. As we've talked about before, Jonas' approach to monitoring Tesla reminds us of a parole officer who falls in love with their parolee. "While Tesla's repeated guidance revisions could begin to risk damaging its elite brand, a mass-recall would probably be far more damaging", he noted. The company announced the acquisition of Perbix, a closely held maker of automated machines used for manufacturing, back in November, a week after Musk cited challenges with automating Model 3 production.

As a result, now that owners have their cars and can do what they want with them, some of them are trying to make a little side cash on Turo, a website where owners can rent their cars out for a daily fee. And factoring the Model 3 out of the equation, Tesla notes that Model S and Model X deliveries alone grew by 33%.

The Model 3 notwithstanding, Tesla did manage to enjoy a successful quarter overall; the company delivered more than 29,800 vehicles over the past three months, setting an all-time quarterly record in the process.

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Only 1,550 Model 3s were delivered in 2017's fourth quarter, the company said in an online statement Wednesday. For the year gone by, Tesla delivered 102,432 vehicles, a solid increase from the 83,922 vehicles it delivered in 2016.

The more gradual ramp is so the company can "focus on quality and efficiency rather than simply pushing for the highest possible volume in the shortest period of time", according to the release.

Buyers of the latest bonds have since taken a hit, and it would likely cost Tesla more to borrow in that market again.

Still, it was able to complete the cross-country journey in just 50 hours, using $100 to charge their Model 3 in that time.

Analysts said on Thursday they continue to believe that sales of the Model 3 sedan could transform the niche automaker into a mass producer, giving it an edge over a host of rivals such as General Motors and BMW who are entering the nascent electric vehicle market.

That pace of production is still below that of many carmakers.

Other reports by TheSundaySentinel

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