Tesla has reported a 40% growth in production to 34,494 vehicles in the first quarter ended 31 March 2018 compared with the previous quarter, according to a company press release on 3 April. The automaker’s production in the first quarter included 24,728 units of Model S and Model X, and 9,766 units of Model 3. Tesla deliveries for the first quarter were only marginally up to 29,980 vehicles, compared to 29,870 units in the fourth quarter of 2017. The company delivered 11,730 Model S units, 10,070 units of Model X, and 8,180 units of Model 3. Tesla also informed that it produced 2,020 units of Model 3 last week.
“Given the progress made thus far and upcoming actions for further capacity improvement, we expect that the Model 3 production rate will climb rapidly through the second quarter. Tesla continues to target a production rate of approximately 5,000 units per week in about three months, laying the groundwork for third quarter to have the long-sought ideal combination of high volume, good gross margin and strong positive operating cash flow.
Significance: Until the last quarter of 2017, Tesla was experiencing severe bottlenecks in pushing up Model 3’s production. Although Tesla missed the target of 2,500 units of Model 3 per week, the automaker expects to meet the target of 5,000 units per week by the end of the second quarter. Tesla started the delivery of Model 3 in late July 2017, when it handed over 30 units to its employees. While reporting its financials for 2017, Tesla had said that it expected 2018 to be a “transformative year for Tesla, with a high level of operational scaling, mainly on the back of increasing sales of its vehicles. Tesla expects Model S and Model X deliveries to total around 100,000 units in 2018.
