Tesla Q3 Production Eclipses 80,000: Deliveries Exceed 83,000

Tesla Model 3

OCT 2 2018 BY ERIC LOVEDAY 29

Tesla has just posted its Q3 2018 results and the numbers sure do impress.

Our focus at InsideEVs is always on deliveries, not production, so here are those vital Tesla figures:

Q3 deliveries totaled 83,500 vehicles: 55,840 Model 3, 14,470 Model S, and 13,190 Model X. To put this in perspective, in just Q3, we delivered more than 80% of the vehicles that we delivered in all of 2017, and we delivered about twice as many Model 3s as we did in all previous quarters combined.

Congrats to Tesla on this amazing achievement.

Some additional highlights include:

  • In Q3, we produced 80,142 vehicles, 50% more than our prior all-time high in Q2
  • 53,239 Model 3 vehicles, which was in line with our guidance and almost double the volume of Q2
  • In the last week of the quarter, we produced over 5,300 Model 3 vehicles, almost all of which were dual motor
  • 8,048 Model 3 vehicles and 3,776 Model S and X vehicles were in transit to customers at the end of Q3, and will be delivered in early Q4. Our overall target of 100,000 Model S and X deliveries in 2018 remains unchanged.

Full release from Tesla below:

Tesla Q3 2018 Vehicle Production and Deliveries

PALO ALTO, Calif., Oct. 02, 2018 (GLOBE NEWSWIRE) — In Q3, we produced 80,142 vehicles, 50% more than our prior all-time high in Q2, including:

53,239 Model 3 vehicles, which was in line with our guidance and almost double the volume of Q2. During Q3, we transitioned Model 3 production from entirely rear wheel drive at the beginning of the quarter to almost entirely dual motor during the last few weeks of the quarter. This added significant complexity, but we successfully executed this transition and ultimately produced more dual motor than rear wheel drive cars in Q3. In the last week of the quarter, we produced over 5,300 Model 3 vehicles, almost all of which were dual motor, meaning that we achieved a production rate of more than 10,000 drive units per week.

26,903 Model S and X vehicles, which was slightly higher than Q2 and in line with our full-year guidance.

Q3 deliveries totaled 83,500 vehicles: 55,840 Model 3, 14,470 Model S, and 13,190 Model X. To put this in perspective, in just Q3, we delivered more than 80% of the vehicles that we delivered in all of 2017, and we delivered about twice as many Model 3s as we did in all previous quarters combined.

Our Q3 Model 3 deliveries were limited to higher-priced variants, cash/loan transactions, and North American customers only. There remain significant opportunities to grow the addressable market for Model 3 by introducing leasing, standard battery and other lower-priced variants of the car, and by starting international deliveries.

Demand for Model S and X remains high. In Q3, we were able to significantly increase Model S and X deliveries notwithstanding the headwinds we have been facing from the ongoing trade tensions between the US and China. Those trade tensions have resulted in an import tariff rate of 40% on Tesla vehicles versus 15% for other imported cars in China.

In addition, Tesla continues to lack access to cash incentives available to locally produced electric vehicles in China that are typically around 15% of MSRP or more. Taking ocean transport costs and import tariffs into account, Tesla is now operating at a 55% to 60% cost disadvantage compared to the exact same car locally produced in China. This makes for a challenging competitive environment, given that China is by far the largest market for electric vehicles. To address this issue, we are accelerating construction of our Shanghai factory, which we expect to be a capital efficient and rapid buildout, using many lessons learned from the Model 3 ramp in North America.

With production stabilized, delivery and outbound vehicle logistics were our main challenges during Q3. We made many improvements to these processes throughout the quarter, and plan to make further improvements in Q4 so that we can scale successfully. As part of this effort, we plan to continue to expand direct deliveries to customers at their home or office, a service we launched in Q3 to improve customer convenience.

8,048 Model 3 vehicles and 3,776 Model S and X vehicles were in transit to customers at the end of Q3, and will be delivered in early Q4. Our overall target of 100,000 Model S and X deliveries in 2018 remains unchanged.

Our net income and cash flow results will be announced along with the rest of our financial performance when we announce Q3 earnings.

We want to thank the entire Tesla team for executing so well during this challenging ramp up in deliveries. We also want to thank all of our customers who volunteered to help us with deliveries, and our new customers who are showing their faith in Tesla by purchasing our products in such large numbers. It was beyond inspiring to see the contributions made by the whole Tesla community.

***************

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.

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29 Comments on "Tesla Q3 Production Eclipses 80,000: Deliveries Exceed 83,000"

newest oldest most voted
RM

I have expected the target number of 250k M3, S and X production and deliver for 2018. Next year will reach 500k?
Tesla is far ahead to others competes.

TM3x2 Chris

It appears that Tesla will be responsible for approximately 60% of 2018 sales. December will be epic, people will rush to buy Tesla because of the expiring full tax credit.
Go Tesla!

Kdawg

They may rush to take delivery, as that is required to receive the tax credit, but those buying now (new buyers) may get the tail end of the partial credit. (personally I doubt it though).

Doug

Considering there are 15 months of full and partial credit left there will be plenty of new orders getting some partial.

Just so long as they buy a config that costs more than $46,000 so they don’t have an insane queue in front of them. It’s the people trying to buy it without Premium Upgrade Package (PUP) or trying to buy Short Range pack (SR) instead of Long Range pack (LR) that have a huge queue in front of them.

There are 10 major hardware configs (1 and 2 aren’t a permutation of PUP, AWD, or Pack size)

1. $69,000 Performance with Performance Upgrade (Yo dawg, we heard you like performance with your performance so we added more performance)
2. $64,000 Performance
3. $55,000 AWD “all in” AWD + PUP + LR
4. $50,000 AWD LR – NO PUP
5. $49,000 “First available” – PUP + LR – NO AWD
6. $46,000 AWD PUP – NO LR
7. $44,000 LR, no PUP, no AWD
8. $41,000 AWD – NO PUP – NO LR
9. $40,000 PUP, no AWD, no LR
10. $35,000 BASE BASE BASE Model 3 with no major options.

Pick something on the top half of that list and the line isn’t too long to get a full or partial credit.

REXisKing

If Tesla had Model 3 leasing my wife would be ordering tomorrow.
I have to wait for 2 more years of my lease to expire.
But, Tesla should consider setting up a lease program.

Wagner

I think #6 and #8 should not be offered. if you have money for AWD get the bigger battery. better to limit the configurations to a minimum.

antrik

Arguably AWD is more important for certain climates than long range or premium interior…

REXisKing

Tesla will have the best economies of scale, and unit costs.
Along with the best battery system on the market,
and best charging network,
and best car,
and safest car,
and most GW of Batteries sold into the grid.

Their stock price is a Bargain.

Benz

Total deliveries in 2018 (after 9 months): 154,265

F150 Brian

Model 3 just hit the next milestone
More than all plugins from Sept 2017

cmina

.. for three moths in a row now.

Bunny

Go Tesla!

Chris O

This is how Reuters reports today on Tesla’s achievement to reach the Model 3 production it has been guiding:

“Tesla misses weekly Model 3 production target, flags tariff costs”

The media war against Tesla is still going on in full force.

Viking79

They met Model 3 delivery target though… Maybe missed some analysts delivery targets, but who knows what they were smoking.

philip d

Quite a few articles are spinning it like this. Saying that the average weekly production rate over the entire last quarter wasn’t 5,000 a week so they still aren’t profitable. Something like 4,200 or so. But if you look at the last month they are likely steady at around 5,000 a week. It’s certainly a little dishonest for them to not look at the current production trend and instead look at the average over the entire quarter.

antrik

Funny thing is that Tesla didn’t even promise more than some 3,800 – 4,200 average per week in their Q3 guidance… So saying they missed the target and thus won’t be profitable is just BS.

Some Guy

These nice numbers also tell another thing: With S and X back up to levels as they had been before production hell in both sales and production, the “lack of demand” as the shorters always claim it is not there despite the trade war with China. Also, it appears that the Model S and Model X crew no longer has to be partially pulled to support Model 3 production. And with the capability to make more than 10 k drive units per week, drive units will not be a bottleneck in ramping to 10 k of the base version per week.
I wonder if GM will support its customers with a similar flood of EVs when they trigger their tax credit phase out in early 2019.

Kosh

And still the stock goes down…..

ffbj

It’s called profit taking, the day after it rose almost 18%.

amt

Let Good Things Happen and The Stock Will Take Care of itself ! …No Worries !

Ron M

Musk needs to talk to Tencent a large shareholder and see if they have any sway in getting relief from the tariffs in China. Needs to remind XI. Tesla buyers are larger anti Trump.

Art Vandelay

That’s why the stock is down today even after positive news. Demand from China is the big question under current circumstances…

Benz

Does anyone know what the annual total sales numbers (in the first 9 months of 2018) in the US are of:

– Mercedes Benz C-Class
– The BMW 3-Series
– Audi A4
– Lexus IS

jelloslug

Here they are though August
C class: 37571
3 Series: 31116
A4: 23012
IS: 15595
Model 3: 56417

Chris Hansen

Go TSLA, go!

Billy G

shouldn’t these massive sales numbers start affecting the carbon impact tracker on Tesla’s website? i’ve been tracking it for a few months now and looks like they have been averting ~1,700 tons of Co2/ day in tailpipe emissions, but with over 22k new model 3’s on the road in one month, shouldn’t that co2 number start rising exponentially with sales. one answer could be that customers are trading in their old tesla’s but they seem to be reselling many of those old models as well.

antrik

With cumulative worldwide sales being in the range of 350,000 or so IIRC, another 22,000 doesn’t make *that* much of a difference…

Do Not Read Between The Lines

In the USA in 2007 Toyota sold 181.221 Prius liftbacks. That was the sales peak. (The Prius family sales peaked at 236.655 in 2012).

PS Are we going to see an update of the LOL chart with this month’s data?

Steve

How close is 83,000 vehicles to the production capacity of the NUMMI plant?