Today, Tesla released its first quarter 2018 production and delivery numbers – unsurprisingly confirming a record production of 34,494 vehicles thanks to an increase in Model 3 production, which accounted for about 10,000 of those vehicles.
The automaker says that they produced a mix of 24,728 Model S and Model X vehicles and 9,766 Model 3 vehicles during the first 3 months of the year.
As for the Model 3 production rate exiting the quarter, Tesla says that they produced 2,020 Model 3 vehicles in the past seven days – as confirmed in an email from Elon Musk that we reported on yesterday.
As for deliveries during the quarter, here’s the split between Tesla’s vehicles:
- Model S: 11,730
- Model X: 10,070
- Model 3: 8,180
- Total: 29,980
Here’s a chart of Tesla’s quarterly deliveries since the launch of the Model S in 2012:
Here’s the press release in full:
Tesla Q1 2018 Vehicle Production and Deliveries
PALO ALTO, Calif., April 03, 2018 (GLOBE NEWSWIRE) — Q1 production totaled 34,494 vehicles, a 40% increase from Q4 and by far the most productive quarter in Tesla history. 24,728 were Model S and Model X, and 9,766 were Model 3. The Model 3 output increased exponentially, representing a fourfold increase over last quarter. This is the fastest growth of any automotive company in the modern era. If this rate of growth continues, it will exceed even that of Ford and the Model T.
We were able to double the weekly Model 3 production rate during the quarter by rapidly addressing production and supply chain bottlenecks, including several short factory shutdowns to upgrade equipment.
In the past seven days, Tesla produced 2,020 Model 3 vehicles. In the next seven days, we expect to produce 2,000 Model S and X vehicles and 2,000 Model 3 vehicles. It is a testament to the ability of the Tesla production team that Model 3 volume now exceeds Model S and Model X combined. What took our team five years for S/X, took only nine months for Model 3.
Given the progress made thus far and upcoming actions for further capacity improvement, we expect that the Model 3 production rate will climb rapidly through Q2. Tesla continues to target a production rate of approximately 5,000 units per week in about three months, laying the groundwork for Q3 to have the long-sought ideal combination of high volume, good gross margin and strong positive operating cash flow. As a result, Tesla does not require an equity or debt raise this year, apart from standard credit lines.
Q1 deliveries totaled 29,980 vehicles, of which 11,730 were Model S, 10,070 were Model X, and 8,180 were Model 3. Net orders for Model S and X were at an all-time Q1 record, and demand remains very strong. Model S and X customer vehicles in transit were high. 4,060 Model S and X vehicles were in transit to customers at the end of Q1, which was 68% higher than at the end of Q4 2017. An additional 2,040 Model 3 vehicles were also in transit to customers. These vehicles will be delivered in early Q2 2018, which keeps us on track for our full-year 2018 Model S and X delivery guidance.
Finally, we would like to share two additional points about Model 3:
- The quality of Model 3 coming out of production is at the highest level we have seen across all our products. This is reflected in the overwhelming delight experienced by our customers with their Model 3’s. Our initial customer satisfaction score for Model 3 quality is above 93%, which is the highest score in Tesla’s history.
- Net Model 3 reservations remained stable through Q1. The reasons for order cancellation are almost entirely due to delays in production in general and delays in availability of certain planned options, particularly dual motor AWD and the smaller battery pack. As described above, owner happiness with the product is extremely high.
We would like to thank our customers, suppliers and investors for their continued patience and belief in Tesla.
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.
No big surprise here due to all the news that came out over the last month but here are a few observations nonetheless.
Tesla is still targeting 5,000 units per week by the end of Q2, which is quite aggressive but I think Tesla has more credibility with the recent increase in production over the last few weeks.
Model 3 deliveries are tracking very close to production showing a quick turnaround for deliveries, which was long seen as a potential issue as production increases.
Model S and Model X deliveries are also quite strong for a first quarter. No one expected them to come close to last quarter’s record due to all the incentives to buy in the last quarter of the year.
Aside from missing the Model 3 production rate of 2,500 units per week, I think that is as good as a quarter as Tesla could have hoped for.
What do you think? Let us know in the comment section below.
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