Tesla aims to calm fears over Model 3 production

A day after launching one of its cars into space, Tesla moved Wednesday to ease concerns on earth over production delays for its Model 3, the key to future growth for the star electric carmaker.

In its quarterly earnings update, the carmaker led by entrepreneur Elon Musk said it is moving ahead toward its goal of producing 5,000 Model 3 vehicles per week by the end of the second quarter.

In a letter to shareholders, Musk said it has been difficult to get accurate forecasts for the car, a more affordable model for the automaker known for expensive vehicles.

"What we can say with confidence is that we are taking many actions to systematically address bottlenecks... and these actions should result in our production rate significantly increasing during the rest of Q1 and through Q2."

Tesla reported a record loss for the quarter of $675 million on revenues of $3.3 billion.

But Tesla shares rose 1.7 percent in after-hours trade, on the upbeat assessment of production efforts.

In the quarter, Tesla delivered 29,967 vehicles including 1,542 Model 3 vehicles.

The Model 3, priced starting at $35,000, is key to Tesla's effort to becoming a mass producer and reshaping the automotive market. Its other cars sell for around twice that price.

On Tuesday, Musk's other major company SpaceX launched a Tesla Roadster into space aboard a Falcon Heavy rocket.

At Tesla, Musk has announced plans for an electric semi-truck, boosted production of batteries for its electric cars and for other uses and has expanded its network of charging stations.

It is also planning an autonomous coast-to-coast drive to "showcase a major leap forward for our self-driving technology," according to Musk.

The California-based company last month announced an unusual executive compensation plan that would enable Musk to be paid only if Tesla hits certain milestones.

Compensation for Musk, 46, will be based on a new 10-year performance stock award that could give him billions worth of company shares, or nothing at all if the company fails to meet its targets.

lo-rl/acb

TESLA MOTORS

Related Links
Car Technology at SpaceMart.com

Tweet

Thanks for being there;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.

SpaceDaily Monthly Supporter
$5+ Billed Monthly

paypal only

SpaceDaily Contributor
$5 Billed Once

credit card or paypal

NREL research determines integration of plug-in electric vehicles
Golden CO (SPX) Feb 05, 2018
An influx of plug-in electric vehicles (PEVs) charging without coordination could prove challenging to the nation's electric grid, according to research conducted by the U.S. Department of Energy's National Renewable Energy Laboratory (NREL). Matteo Muratori, a transportation and energy systems engineer at NREL and author of the new Nature Energy paper, "Impact of Uncoordinated Plug-in Electric Vehicle Charging on Residential Power Demand," created a computer simulation to explore the effects of i ... read more