Tesla previously had a target of building 500,000 cars a year by 2020, the company has now decided to change it plans to ramp up production to half a million cars annually by 2018.
The news was announced in Tesla’s latest earnings report, one of the reasons that the target is going to be met earlier is because of the demand for their new Model 3.
Additionally, given the demand for Model 3, we have decided to advance our 500,000 total unit build plan (combined for Model S, Model X, and Model 3) to 2018, two years earlier than previously planned. Increasing production five fold over the next two years will be challenging and will likely require some additional capital, but this is our goal and we will be working hard to achieve it.
Our objective with Model 3 is to create the world’s best car with a base price of $35,000, before any incentives, with a range of at least 215 miles on a single charge, and with strong gross margins. We plan to incorporate our best technology into Model 3, yet keep it relatively simple to build at high volume and with high quality.
It will be interesting to see if Tesla can increase production to half a million cars a year by 2018, if it can then the company should be able to meet demand for their new Model 3 and also their other vehicles.
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