Tesla on Wednesday said it expects to make as many as 55,000 Model 3 sedans in the third quarter of 2018, a clip of about 4,000 per week. The automaker also reported that it earned $4 billion in revenue in the second quarter, while posting a net loss of $743 million, in line with recent quarters. Tesla reaffirmed Musk’s intention to make the company profitable in the third and fourth quarter of this year, it said in a letter to investors Wednesday. “A total vehicle output of 7,000 vehicles per week, or 350,000 per year, should enable Tesla to become sustainably profitable for the first time in our history—and we expect to grow our production rate further in Q3,” the letter said. Tesla also wrote it repeatedly hit a weekly production total of 5,000 Model 3s, and aims to increase that to 6,000 per week by late August. “We then expect to increase production over the next few quarters beyond 6,000 per week, while keeping additional capex limited,” the letter said. “We believe that increasing capacity by improving utilization of our existing lines and making selective improvements to address bottlenecks rather than creating entirely new duplicated lines will be the most capital efficient approach.” In total, Tesla expects to make anywhere from 50,000 to 55,000 Model 3s in the third quarter, a clip of roughly 4,000 per week. Tesla reiterated its plan to eventually increase production of the Model 3 to 10,000 per week, but a timeline remains vague. A… [Read full story]
Jalopnik is a news and opinion website about cars, the automotive industry, racing, transportation, airplanes, technology, motorcycles and much more. We aim to cover these things with an honesty, transparency and cheerful belligerence that can’t be found anywhere else.