Tesla Third Quarter Model 3 Production in Line with Guidance

(Bloomberg) -- Tesla produced 80,142 vehicles in the third quarter, including 53,239 Model 3 vehicles, in line with previously-announced production guidance of 50,000 to 55,000.

  • In the last week of of the quarter the company produced over 5,300 Model 3 vehicles, almost all of which were dual motors
    • Co. says this means Tesla achieved a production rate of more than 10,000 drive units per week
  • Tesla produced 26,903 Model S and X vehicles, which was slightly higher than 2Q and in line with full-year guidance
  • Co. says in 3Q were able to 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”
  • Co. says it continues to lack access to cash incentives available to locally produced electric vehicles in China that are typically around 15% of MSRP or more
    • To address issue, co. accelerating construction of Shanghai factory, which co. expects to be a capital efficient and rapid buildout
  • Sees expanding direct delivery to customers at home or office
  • 8,048 Model 3 vehicles and 3,776 Model S and X vehicles were in transit to customers at the end of 3Q; Overall target of 100,000 Model S and X deliveries in 2018 remains unchanged

©2018 Bloomberg L.P.