It took the company quite a few years to achieve 100,000 Model S and Model X sales. Today however, just a year after a slow start in production, Tesla has reached the milestone of 100,000 Model 3 vehicles produced. That’s not only much faster than Tesla’s other vehicles, it’s faster than any other EV model in history.
Model 3 production now consistent ~ 5000/week
As we reported yesterday, Tesla started the quarter strong with the production of over 11,500 vehicles, including >7,400 Model 3s in the first 11 days. That’s over 1000 vehicles/day.
Unlike previous quarters, the automaker was able to maintain its average production rate from the last quarter early in the fourth quarter.
It enabled the automaker to produce the 100,000th Model 3 today.
In overall production when accounting for the release candidates and engineering vehicles, Tesla actually achieved the milestone earlier this week, but according to a source familiar with Tesla’s production, regular production reached the milestone today.
It’s an important milestone for Tesla, which is transitioning from a relatively niche automaker to a mass-market auto manufacturer with the Model 3.
$35,000 Model 3
The transition will be complete when Tesla launches the base version of the Model 3 at $35,000, which is expected by the end of the year.
The market is now looking at Tesla’s production rate to be as high as possible once the vehicle is available since it is expected to significantly expand the demand for the electric vehicle.
Unlike many automakers, Tesla now is well positioned to capture that demand with the biggest battery factory in the world and the sales force with knowledge of the EV industry.
In North America, we have been seeing Model 3 around for a while now and many of them in some markets like California, but we still need to appreciate those milestones because it’s what is bringing EVs mainstream.
I believe that by this time next year, Model 3 will likely be the most popular electric vehicle in the world in cumulative volume by a wide margin.
Hopefully, the rest of the industry is watching closely and looking to accelerate their own EV programs.
When Tesla first started, I thought it'd have a greater impact by forcing the hand of legacy automakers to make EVs. Now looking at Tesla's production rate and automakers lacking behind/fighting regulations, Im not so sure. How you see Tesla's place in the market going forward?
— Fred Lambert (@FredericLambert) October 12, 2018
Tesla is already producing electric vehicles at a higher rate than any legacy automaker with no signs of change evident in the space.
Perhaps legacy automakers should look at that 100,000th Model 3 milestone and look at their own efforts and reevaluate what kind of volume they are planning for their own programs.
What do you think? Let us know in the comment section below.