Tesla had put its best foot forward in early 2017, showing its best ever results in terms of production of vehicles as well as delivery rates. But Elon Musk’s Palo Alto headquartered company shows no intentions of slowing down. While the company has been progressing much to the satisfaction of shareholders, as Musk had stated, it is still a minor goal compared to the gargantuan quintuple increment in production rates that he is hoping for.
Tesla Motors’ Performance Thus Far
Tesla Motors has already built more than 25,000 sedans of its famed Model S as well as the increasingly popular Model X crossovers in Q1 2017. Its total production rate has been very similar to what the company showed in the third quarter of 2016, and it about 69 per cent better than the production rate of Tesla Motors in the first quarter of 2016. This is still a huge improvement despite the 0.5 per cent margin for error stated by Elon Musk when the numbers were released on the 2nd of August, more so when compared to the US$35,000 base price that was promised on the Model 3. Musk had already raised over US$1.2 bn debt sale and stocks over the past month to fund this promise.
Impact of Tencent’s Vote of Confidence
Several other things also point to the level of optimism held by Tesla regarding their goals, one of which includes the vote of confidence shown by Tencent, the Chinese social media mammoth, when it acquired a 5 per cent stage in Tesla Motors. The stock was at the time worth close to US$1.8 bn. Further optimism comes from the close to 400,000 people currently in the waiting list after dropping US$1,000 as reservation fees. While this does spell out a complicated scenario for Tesla in the immediate future, the payoffs could be just as big.