Former executive is joining back Tesla Inc - Are good days coming?
- Author: Zachary Reyes Feb 24, 2017,
Feb 24, 2017, 9:20
Tesla is now working on setting up a production line for the Model 3 auto in its factories.
"Our Model 3 program is on track to start limited vehicle production in July and to steadily ramp production to exceed 5,000 vehicles per week at some point in the fourth quarter and 10,000 vehicles per week at some point in 2018".
Tesla's announcement that it is on track for its Model 3 production plans offers relief for investors, who believe that the mass-market model of the company's electric vehicles presents a chance for the company to swing into profitability. In the second half, the company should be delivering Model 3 vehicles, but it's not clear how many.
Tesla has announced that it will begin building its Model 3 this July but needs new investment before it can begin selling its small pure-electric BMW 3 Series-rival.
According to AZ Family, Tesla said on Wednesday that it expects to finalize locations this year for three more Gigafactory locations. It shipped close to 25,000 cars in the third quarter of 2016 alone, but will need to go further if it wants to not keep Model 3 customers waiting.
Tesla said production has begun at its Gigafactory on battery packs for its cars and for electrical storage at homes, businesses and utilities. At the moment of writing, it's unclear how many Tesla Model 3 cars have been pre-ordered. The company managed to do better, achieving a revenue of $2.284 billion, but had a loss of $0.78 per share. However this doesn't mean that the Tesla Model 3 is going to arrive in India during the same time period.
Share prices rose once the company announced that the production of its upcoming mass-market auto, the Model 3 is on track. TSLA has delivered little less of 80,000 cars a year ago, while Ford delivered more than 6 million. When combined with Model S and X production targets, the company should come in right around 200,000 vehicles produced this year.
Tesla Inc. came out with its Q4 and full-year results on Wednesday and the company assured its investors that its Model 3 electric vehicle, which is eagerly awaited, is right on schedule.
Musk said on an earnings call last night that the current business plan "could push it close to [the edge]" later on in the year, adding that a fundraise "probably makes sense...to reduce risk". Tesla has $3.4 billion in cash.
Over the past three months, the stock has enjoyed a 41 percent rally and is near record highs, while short bets against Tesla remain elevated despite almost $2 billion in paper losses suffered by short sellers this year.