Tesla releases Q2 2018 production numbers: 28,578 total Model 3, 5,031 in one week
During the final week of the second quarter, Tesla managed to produce 5,031 Model 3 and 1,913 Model S & X. Tesla’s Q2 2018 production totaled 53,339 vehicles, a 55% increase from the first quarter, making it the most productive quarter in the company’s history so far. Model 3 production, which reached a total of 28,578 units, also exceeded the combined Model S and X production of 24,761 vehicles during Q2 2018.
Q2 deliveries totaled 40,740 vehicles, of which 18,440 were Model 3, 10,930 were Model S, and 11,370 were Model X. As noted by Tesla, both orders and deliveries for the flagship luxury sedan and SUV were higher in Q2 than a year ago. Tesla also expects its overall target for 100,000 Model S and Model X deliveries in 2018 to be unchanged.
Tesla managed to produce almost three times the number of Model 3 in Q2 than it did in Q1 2018. According to the company’s vehicle production and deliveries report, the GA3 line within the Fremont factory is expected to have the capability to hit a production rate of 5,000 Model 3 per week on its own. Augmented with GA4, the Model 3’s newest assembly line set up in the massive sprung structure on the grounds of the Fremont factory, however, Tesla noted that it was able to hit its production target for the compact electric car faster.
With the 5,000/week mark attained, Tesla is now looking to increase its production capacity for the Model 3 even further. According to the company, it expects to increase its manufacturing rate to 6,000 Model 3 per week by late next month. Tesla also reaffirms its guidance for positive GAAP net income and cash flow in the upcoming third and fourth quarter, regardless of external challenges such as a weakening dollar and higher tariffs for vehicles imported into China.
As of the end of Q2 2018, Tesla had 11,166 Model 3 vehicles and 3,892 Model S and Model X in transit to customers, with deliveries expected to be scheduled sometime early in the third quarter. According to Tesla, the high number of vehicles in transit was primarily due to an increase in production during the end of Q2 2018. Remaining net Model 3 reservations as of the end of Q2 stood at roughly 420,000, despite Tesla having delivered 28,386 Model 3 vehicles to date. Tesla expects more orders for the compact electric car to ramp once more as test drives for the Model 3 start getting offered in galleries in the near future.
Tesla’s most recent milestone comes as a huge victory for the electric car maker. Over the past year, Tesla struggled to ramp up the production of the compact electric sedan, with CEO Elon Musk dubbing the endeavor as “production hell.” During the second quarter, however, Tesla dug deep in order to overcome its production challenges, with the company resorting to unorthodox solutions, such as air-freighting robots from Europe and setting up a new assembly line in a sprung structure, in order to improve its chances of attaining its Q2 0218 production goals. As noted by the company in its recent report, however, the hardship over the past 12 months has been well worth it.
“The last 12 months were some of the most difficult in Tesla’s history, and we are incredibly proud of the whole Tesla team for achieving the 5,000 unit Model 3 production rate. It was not easy, but it was definitely worth it.”
Tesla’s delivery numbers, particularly its 5,000 Model 3 per week milestone, has been received warmly by the company’s investors. As of writing, Tesla stock (NASDAQ:TSLA) is trading up 5.30% at $361.16 per share.