Tesla May Increase Production on Model S to 30,000 Cars Next Year

JUL 29 2012 BY STAFF 6

A Model S Gets Built In Tesla's Fremont Assembly Center

Despite only selling 10 Model S all electric cars this quarter, and facing production cuts in the current quarter that will halve the expected deliveries from 1,000 units to 500 (due to some interior quality control issues), Tesla has big plans for the end of this year and into the future.

Between October and December of this year Tesla expects a 9 fold increase to 4,500 from the prior quarter, which is close to the plant’s maximum capacity.

”Our key objective for the rest of the year is to ramp production with a focus on quality and to rollout the Model S experience to a broader audience through customer deliveries, test drives and store openings,” Tesla said a statement to  shareholders.

Model X Coming in 2014

CEO Elon Musk, says that due to a current reservation backlog of 12,200 reservations, that could mean wait times as long as 10-11 months, and he envisions that list growing even longer, with Tesla having adding 700 of those hand raisers in just the last 3 weeks.

While stressing the additional cost implications would be almost negligible, Musk announced that annual production of the Model S could be easily increase to 30,000 cars, or perhaps more to meet the burgeoning demand.  How would this be accomplished?  Simple, by adding a second shift.

Naturally, nothing is as simple as it seems in financial statements, especially when it comes to forward looking projections.  Tesla would be facing a logistical high wire act to in order to bring in another shift.  The Model S has many uniquely fabricated parts that suppliers would likely have trouble boosting production for on a short term basis to enable Tesla to catch up to demand, and a second shift would also force the need for more highly trained employees on staff.  However, if ongoing demand past 20,000 cars per year is actually there, this kind of flexibility to have on hand is invaluable.

Past the Model S, and once Tesla has brung their production line up to full speed in Q4, engineering and development work is expected to begin at the Fremont plant in anticipation of the new Model X crossover, which is based on the Model S.  The X will go on sale in 2014, and will be followed by a “common man’s” lower budget, all electric car on a new/smaller platform in 2015.


2013 Tesla Model S


Categories: Tesla


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6 Comments on "Tesla May Increase Production on Model S to 30,000 Cars Next Year"

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Need to hire back Nummi people!!!

Terry, they are hiring back NUMMI personnel in droves. The best and the brightest of the NUMMI staff are already working there.

What Tesla needs, is a total agreement with some big car company that teaches them how to actually build cars. Quality issues is just a non stop game with tesla. Wasn’t for their almost fanatic followers and they would have closed long time ago. Just imagine this same issues with volt…

Tesla has only sold one vehicle thus far, other than two hands full of Model S, and that was built by Lotus. Tesla did build and install motors, PEM, and battery packs. What non-stop issues have you experienced?

He may have some trouble ramping up production (initially) , but sales-wise, I really believe these mall stores will revolutionize car sales. Seriously, who likes to visit a car dealer and be preyed upon like a crippled zebra? I do like visiting the Apple store, though. I sincerely hope they hire no one who has ever worked at a car lot in their life.

More than the experience, though, he’s introducing electric cars to the masses, and I don’t think most people have seen one up close, much less sat in one or driven an EV. The first dealer I visited for my Leaf had no idea what they were selling, and their Leaf specialist was off that day. They might as well have been trying to sell me the space shuttle or a supercomputer. Smart people selling a smart car should make all the difference.

Strange that building and flying spacecraft appears to be so much easier than building an EV from the ground up. It kind of makes sense why the big auto manufacturers seem to fear doing it, and laugh at anyone else who tries.

Wishing Elon and his dedicated team, the very best of success. I’d love the option to buy his $30K city car for the masses. 🙂