Tesla Model 3 prototypes are being spotted more frequently lately. Last week, we saw the black matte Model 3 prototype in a video on the road and leaked shots inside of what looked like a service center. Now the silver prototype was spotted at the Fremont factory.
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A few weeks ago, Tesla closed an important $1.7 billion stock offering to finance its new build plan for the Model 3. The capital raise was needed for Tesla to accelerate its production and achieve a rate of 500,000 cars in 2018 – two years earlier than previously planned.
The new plan is in response to the higher than expected demand for the Model 3. Tesla’s management was expecting 100,000 to 200,000 reservations at best, but the automaker already received over 373,000 reservations.
While Tesla already confirmed that some of the capital would be used for its operations, the company made it clear that most of the money would be put toward an expansion of the Fremont factory to increase production. Now we get a specific number for the expansion as Tesla is applying for a $106 million tax break with the state to help the project.
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Analyst Brad Erickson from Pacific Crest issued a new note to clients today following a visit of the Tesla Fremont Factory. The analyst noted that Tesla appears to be on track to exit the second quarter at the a production rate of 2,000 cars per week (Model S and X combined) and it is tracking toward its annual delivery target of 80,000 to 90,000 vehicles.
While Erickson appears confident that the automaker can achieve its short-term delivery goals, he is more cautious about Tesla’s new plan for 500,000 vehicles in 2018.
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Following Tesla’s announcement that it plans to double its total production output to 500,000 vehicles in 2018 and 1 million in 2020, Tesla CEO Elon Musk was asked by analysts how and where he plans to manufacture those vehicles.
While the company has been talking about plans to build more vehicle factories in Europe and China, Tesla’s Fremont factory remains its only full-fledged car manufacturing facility. Company officials have always referred to the Fremont plant’s total capacity to be around 500,000 cars per year once optimized, which is what Toyota and GM were producing when they owned the factory, until now.
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A German publication, Captain Gadget, managed to get authorization from Tesla to film the Model X assembly line at the Fremont factory in California. The result is rare footage of Tesla’s highly automated assembly line and rarely seen sections of the factory.
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Earlier this month, Tesla confirmed that it is currently working on increasing its production plans to minimize the wait for the Model 3 following the storm of reservations it received for the $35,000 all-electric sedan – approaching 400,000 cars as of the latest update. The vehicles are set to be manufactured at Tesla’s main factory in Fremont, California.
While Tesla plans to manufacture about 90,000 vehicles in 2016, the company always refers to the Fremont plant’s total capacity to be around 500,000 cars per year once optimized, which is what Toyota and GM were producing when they owned the factory, and it also plans to add more manufacturing capacity in other regions.
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Sen. Bob Wieckowski, whose district is home to Tesla’s Fremont factory, is sponsoring a bill which include a provision to eliminate the sales tax on new cars manufactured in California for out-of-state buyers. The new provision would allow Tesla to spur what the senator refers to as “industrial tourism” and maybe even create a program similar to BMW’s popular “European delivery” option.
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Elon Musk teases the Model X nearing production in a picture posted to Instagram Saturday night. Tesla’s CEO says the company is still “bringing up” the second production line, which is expected to increase Tesla’s production capacity at the Fremont factory and allow the company to start production of the long awaited Model X.
The CEO also confirmed that the production line is equipped with 542 robots including 15 operating simultaneously at the central assembly point.
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