March 21 2018

Tesla Averaging 1800 New Model 3 Reservations Per Day

March 21 2018, 12:44 | Geraldine Moore

Hundreds of engineers and investors around the world collectively sighed in relief today as Tesla CEO Elon Musk revealed that he has decided against spending too much time and money on developing a new platform for the company's next vehicle, and will instead use the one they just finished developing. CEO Elon Musk told an earnings call that "what we have ahead of us is an incredibly hard production ramp".

Since Friday's handover event, which delivered the first 30 Model 3 sedans to customers, Elon Musk's company said orders for the $35,000 electric vehicle are averaging 1,800 a day.

The near-doubling of automotive revenues, from $1.18 billion in the second quarter of last year, to $2.29 billion this year was the result of 53% more deliveries and fewer vehicles sold with residual risk from leases. In a letter to investors (pdf), Tesla said it expects deliveries of Model S and Model X to increase during the second half of 2017.

"This is maybe the best I've ever felt about Tesla to be frank", he continued. Tesla shares have risen more than 50 percent since the beginning of 2017.

The company has been adopting an Apple Store strategy for solar power since acquiring SolarCity Corp past year for US$2 billion. Wedbush Securities Inc. raised its position in Tesla by 9.4% in the second quarter. Additionally, during the initial phase of the Model 3 ramp in Q3, the volume produced will be tiny relative to the installed production capacity. Additionally, it says that it has begun to install Solar Roof tiles this quarter.

Musk said previously that initial sales will be limited by manufacturing capacity.

Musk also said in March that the new production line would allow Tesla to move away from the 12-volt electrical system used in most cars (and Teslas), which, according to Musk, is "wrong for everything".

Cash balance of slightly over $3.0 billion at the end of Q2, plus expected cash generated from operations in the second half of 2017, provide sufficient liquidity to fund our capex projections, and provide flexibility through the Model 3 ramp. Choosing this model and adding options, ranging from bigger wheels, colours other than black, Autopilot and a tinted roof, can put almost US$25,000 onto the base price of a Model 3.

Those first installations have gone to employees who the company chose "to help ideal all aspects of Solar Roof customer experience". The company hit a tight production deadline, turning out its first, lower-cost cars in July.

It has also not been confirmed what the Model Y will look like and whether it will be the SUV version to the Model 3, like the Model X is to the Model S, or whether out will sport a whole new design.

Tesla said it expects to begin deliveries to non-employees in the fourth quarter. "I spend a lot of my week working on Autopilot with the team, right down in the trenches", he said. It will triple the number of superchargers by the end of next year, he said.

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