Tesla Q1 2018 Vehicle Production and Deliveries
April 03 2018 - 9:06AM
Q1 production totaled 34,494 vehicles, a 40% increase from Q4 and
by far the most productive quarter in Tesla history. 24,728
were Model S and Model X, and 9,766 were Model 3. The Model 3
output increased exponentially, representing a fourfold increase
over last quarter. This is the fastest growth of any automotive
company in the modern era. If this rate of growth continues, it
will exceed even that of Ford and the Model T.
We were able to double the weekly Model 3 production rate during
the quarter by rapidly addressing production and supply chain
bottlenecks, including several short factory shutdowns to upgrade
equipment.
In the past seven days, Tesla produced 2,020 Model 3 vehicles.
In the next seven days, we expect to produce 2,000 Model S and X
vehicles and 2,000 Model 3 vehicles. It is a testament to the
ability of the Tesla production team that Model 3 volume now
exceeds Model S and Model X combined. What took our team five years
for S/X, took only nine months for Model 3.
Given the progress made thus far and upcoming actions for
further capacity improvement, we expect that the Model 3 production
rate will climb rapidly through Q2. Tesla continues to target a
production rate of approximately 5,000 units per week in about
three months, laying the groundwork for Q3 to have the long-sought
ideal combination of high volume, good gross margin and strong
positive operating cash flow. As a result, Tesla does not require
an equity or debt raise this year, apart from standard credit
lines.
Q1 deliveries totaled 29,980 vehicles, of which 11,730 were
Model S, 10,070 were Model X, and 8,180 were Model 3. Net
orders for Model S and X were at an all-time Q1 record, and demand
remains very strong. Model S and X customer vehicles in transit
were high. 4,060 Model S and X vehicles were in transit to
customers at the end of Q1, which was 68% higher than at the end of
Q4 2017. An additional 2,040 Model 3 vehicles were also in transit
to customers. These vehicles will be delivered in early Q2 2018,
which keeps us on track for our full-year 2018 Model S and X
delivery guidance. Finally, we would like to share two
additional points about Model 3:
- The quality of Model 3 coming out of production is at the
highest level we have seen across all our products. This is
reflected in the overwhelming delight experienced by our customers
with their Model 3’s. Our initial customer satisfaction score for
Model 3 quality is above 93%, which is the highest score in Tesla’s
history.
- Net Model 3 reservations remained stable through Q1. The
reasons for order cancellation are almost entirely due to delays in
production in general and delays in availability of certain planned
options, particularly dual motor AWD and the smaller battery pack.
As described above, owner happiness with the product is extremely
high.
We would like to thank our customers, suppliers and investors
for their continued patience and belief in Tesla.
Our delivery count should be viewed as slightly conservative, as
we only count a car as delivered if it is transferred to the
customer and all paperwork is correct. Final numbers could vary by
up to 0.5%. Tesla vehicle deliveries represent only one measure of
the company’s financial performance and should not be relied on as
an indicator of quarterly financial results, which depend on a
variety of factors, including the cost of sales, foreign exchange
movements and mix of directly leased vehicles.
Forward-Looking StatementsCertain statements
herein, including statements regarding future production and
delivery of Model S, Model X and Model 3 and expected gross margin
and cash flow results, are “forward-looking statements” that are
subject to risks and uncertainties. These forward-looking
statements are based on management’s current
expectations. Various important factors could cause actual
results to differ materially, including the risks identified in our
SEC filings. Tesla disclaims any obligation to update this
information.
Investor Relations Contact:
ir@tesla.com
Press Contact:
press@tesla.com
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