Tesla Officially Confirms Production Of Over 300,000 Vehicles

Tesla

FEB 20 2018 BY STEVEN LOVEDAY 19

Tesla Model S

Tesla Model S

Tesla surpasses 300,000 vehicles produced, which leaves only one of the original 10 operational milestones unsatisfied.

Though Tesla may be the most well-known electric car maker, it still falls short in terms of production. However, this stands to change in the near future, especially as Model 3 production begins to ramp up substantially.

Tesla Model 3

The Silicon Valley automaker has inadvertently confirmed that it surpassed a production milestone of 300,000 vehicles. As shown below, this is one of several milestones that were put in place back in 2012 to accelerate growth.

At the end of 2017, Tesla had delivered ~289,000 vehicles (212,821 Model S, 71,927 Model X, 1,772 Model 3, and ~2,450 Roadsters). So, the automaker only needed to produce about 11,000 more to surpass the milestone (keep in mind that there were surely many vehicles produced by the end of December that had yet to be delivered). However, Tesla doesn’t report those numbers until the end of the next quarter.

Nonetheless, being that there is a milestone for “Aggregate vehicle production of 300,000 vehicles,” and the recent report for shareholders confirms that only one milestone was not met (and it was a different one, as specified below), we know that the automaker has surpassed the threshold.

MORE INFORMATION: Tesla’s New Compensation Plan For Musk – Meet These Goals Or You Get Nothing

Below is the related snippet from the recent, lengthy Tesla proxy statement for shareholders:

The 2012 Performance Award consisted of 10 equal vesting tranches, with a vesting schedule based entirely on the attainment of both operational and market capitalization milestones, as further detailed below. The 2012 Performance Award was designed to be an incentive for future performance that would take many years to achieve, if at all, and was a 100% at-risk performance award. Mr. Musk and the Board viewed the milestones as very challenging at the time the Board granted the 2012 Performance Award.

Under the 2012 Performance Award, each of the 10 vesting tranches requires that Tesla meet a combination of (i) an operational milestone achievement and (ii) a $4 billion increase in Tesla’s market capitalization. Consequently, the 2012 Performance Award would fully vest only if Tesla achieved a sustained market capitalization increase from $3.2 billion to $43.2 billion, and all 10 operational milestones described were achieved. Market capitalization for purposes of milestone achievement was determined based on a rolling six month historic average (based on trading days only). The market capitalization for a particular trading day is equal to the closing price multiplied by the outstanding shares of common stock as of the end of such trading day.

The 10 operational milestones for the 2012 Performance Award are:

Successful completion of the Model X Alpha Prototype;

Successful completion of the Model X Beta Prototype;

Completion of the first Model X Production Vehicle;

Successful completion of the Model 3 Alpha Prototype;

Successful completion of the Model 3 Beta Prototype;

Completion of the first Model 3 Production Vehicle;

Gross margin of 30% or more for four consecutive quarters;

Aggregate vehicle production of 100,000 vehicles;

Aggregate vehicle production of 200,000 vehicles; and

Aggregate vehicle production of 300,000 vehicles.

The report points out that the only operational milestone that has yet to be achieved is the “gross margin of 30% or more for four consecutive quarters.” In terms of the market cap conditions, all 10 have been satisfied.

If you’re interested in poring over the entire report, follow the link below.

Source: Tesla, Electrek

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19 Comments on "Tesla Officially Confirms Production Of Over 300,000 Vehicles"

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(⌐■_■) Trollnonymous

I’m a greedy selfish SOB. If I were him, once all criteria is met and rewarded, I’ll take the Turkey$ and run like a mofo!

Anyone else thing the goal line keeps moving for him?

300,000th Tesla Model S will be delivered in 2019.

100,000th Tesla Model X will be delivered in 2018.

4000 – 5000 Model 3’s will be sold in February 2018

(⌐■_■) Trollnonymous

Nope. I predict 2655 ……..lol

Didn’t they skip Model 3 Beta? Or was that the 30 units they delivered on July 28?

I consider it was the entire employee delivery series, and yes they did skip Beta.

Not really. They just shipped Beta to their customers.

Model 3 sold the most EV for the month of January 2018

Yeah, like news flash. It’s almost the end of February.

Did Tesla meet 200,000 vehicle threshold that triggers decline of federal tax credit?

Not yet but they’re getting close.

My money is on Tesla hitting 200,000 sales in May or June. Then GM hitting 200,000 around October.

Yea, and what do you think about delaying non-owners delivery of model 3 while some S/X owners get to configure their SECOND one? I guess/hope the tax credit is limited to 1 vehicle per year, but still, they should have the decency of delaying those second ones so non-owners get a chance with the full credit.

Don’t panic yet.

While I certainly hope they delay since we would benefit from it.

I think it would not be in Tesla’s best interest to wait. They need to start moving product, and they need to move the highest end models. I think this because so far Tesla is:

-Continuing to deliver vehicles to existing owners first. Not starting non-US deliveries until Mid-2018.

-They intend to hit 2,500/week by the end of March. Even if they only average 2,000/week in the US for Q2, that would be 24,000 Model 3’s.

-If they are going to intentionally delay there would only be positive PR for announcing it. It gives them an excuse to take their time with their ramp. And makes them look considerate of their new customers. So until Tesla announces they’re going to do it, I can’t see a reason to believe that they are.

The chances of *not* hitting 200,000 in Q2 are pretty small. I’d say the best thing is to pray for more production delays! 🙂

They won’t delay intentionally, but moving into Canada early is interesting.

Based on recent earnings reports, it may be a while before Tesla meets the 30% gross-margin milestone.

What a wonderful achievement from a small new company.
All the vehicles built by Tesla has a range between 200 – 340 miles even though few 1000 early models had just 160 miles. So an electric vehicle with longer range makes much longer trips there by reducing the pollution and saving on foreign oil. And with supercharger facility, we can make even longer trips and charge on the way.

If you want to make a round trip of 120 miles and if your EV had 100 mile range, you will simply take the other vehicle which will be a gas guzzler, on the other hand if you had Tesla, you will drive it confidently saving nearly 4 gallons of gas. So an average Tesla would have driven lot more miles than an average EV. Even though Nissan has sold 540,000 EVs, in terms of miles drive and the CO2 reduction, Tesla will far outsell any other company.

Now the new Leaf will 150 mile range improves a lot, still the Model-3 with 310 mile will go even further. Unless Renault/Nissan starts installing superchargers, they will be far behind Tesla.

Gee Don, have you looked at the price of the 150 mile Nissan Leaf compared to the 310 mile version of the Tesla Model 3, or is money not an issue for you? Sadly, money is an issue for the vast majority of new car buyers. Nissan will be just fine in the face of the mighty Tesla.

Who exactly is far behind who? Ask yourself when did Nissan sell it’s 300,000th car? *hint* It was a long, long, long time ago. In fact, they produce well over 300,000 cars every year and they have done so for decades. They will again in 2018. I really don’t think Nissan needs to be installing any kind of charging network anymore than they need to start building gas stations.

You can recharge them in less than 30 minutes (~to80% from empty), you know! Why bother with a stinky fossil-fueled car at all? All you need is sufficient imagination and incentive to attempt the required change in mental attitude.