Elon Musk is challenging Tesla employees to deliver “every car we possibly can” before the end of September, and it looks like the troops are responding.
The surge in production comes at a good time. Tesla is trying to increase its annual production from roughly 80,000 cars in 2016 to 500,000 by 2018. This is a herculean task that most companies would shy away from – just ask any Ford or GM executive whether they think they can increase their production by over 6X in two years.
Select members of the press were given a tour of Tesla’s 5.3 million square-foot factory in Fremont (California), and it was an impressive tour.
Over 500 robots were hard at work on the line building the Model X SUV. Tesla representatives confirmed that the factory is now set up to deliver 2,000 cars a week (104,000 cars a year if the factory runs at full capacity for an entire year). It’s a little surprising to think back to 2012 and realize that Tesla was only producing roughly 5,000 cars a year.
If the current production rate at Tesla’s Fremont factory continues, it will be able to show positive cash flow for Q3. This will make it much easier for the company to raise the additional cash required for the production of its upcoming Model 3 sedan.
Title Image Credit: www.motortrend.ca