The Strategist

Tesla surprises analytics with rise in production volumes

04/04/2017 - 13:48

Tesla company has surpassed analysts' expectations, announcing the release of more than 25,000 cars in the first three months of this year. This is a quarterly record for the manufacturer of electric vehicles, which promises to begin assembling its new affordable sedan Model 3 in July.

Joseph Thornton via flickr
Joseph Thornton via flickr
Elon Musk’s company Tesla produced 25 418 cars in the first quarter of 2017. This is 69% more than in the same period in 2016. As Tesla noted in a press release, this quarter proved to be record for the company. This fact surprised analysts. They believed that Tesla was only capable to produce 23.0-24.5 thousand cars, especially since the company did not achieve its goals and produced only 22 thousand cars in the last quarter of 2016. 

In total, 13,450 Model S cars and about 11,550 Model X were produced in the first quarter. At the same time, about 4,650 vehicles are in the process of transferring to customers and will be counted as already sold in the second quarter. Thus, the company has all chances to fulfill the ambitious goals set by Elon Musk - to produce 50 thousand cars in the first half of 2017. In addition, the company promises to launch production of a new budget model Model 3 in July. Its first deliveries to consumers are scheduled for the end of the year. The carmaker expects that it will allow reaching an even more ambitious level of 500 thousand cars a year by the end of 2018.  

This year has started successfully for the company: for the first three months, Tesla’s shares rose by 30% just in anticipation of the forthcoming release of Model 3. The vehicle is priced at $ 35 thousand, twice less than Model S and Model X. Besides, investors are exited with messages that Chinese Internet giant Tencent Holdings bought a 5% share in Tesla. Now, Tesla’s market value is estimated at $ 45.4 billion, that is, less than $ 1 billion than that of Ford Motor. 

Meanwhile, consumers are still doubting Tesla's ability to make a completely autonomous car even within the Autopilot hardware complex, which has become standard in the Model S and Model X models since October 2016. Most developers of unmanned vehicles consider Tesla's approach unsafe because the company uses only video cameras in its cars and does not install LIDAR (Light Identification Detection and Ranging). The company believes that you need only two things to create an autonomous driving system that will drive a car better than a person. These are better sensors and artificial intelligence with decisions better than those that are accepted by human drivers. 

Most of 400,000 customers of Tesla Model 3 have chosen this car as it is likely to become the first relatively affordable serial electric vehicle capable of driving a sufficiently long distance on one battery charge. However, Tesla is rather optimistic and wants to make Model 3 also the first self-driving mass production car, writes Electrek.

The publication polled more than 6 thousand people, and found out that users would rather choose Tesla Model 3 because of its "electrical" qualities (about 67% voted for this option) than because of possibility to use an autopilot (about 33 %).


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