Tesla Sets Ambitious Goal: 500000 Electric Cars Every Year Starting 2018

With more than 325,000 pre-orders placed in the first week after the $35,000 Model 3 was unveiled, Musk said in a Wednesday earnings call he has set a production date for July 2017.

Analyst Ryan Brinkman maintained his Underweight rating on Tesla but increased his price target by $15 to $185, after the first quarter of fiscal year 2016 (1QFY16) earnings release. By now, Tesla's net loss widened to 282.3 million dollars, or 2.13 dollars per share, in the first quarter ending March 31, from 154.2 million dollars, or 1.22 dollars per share, a year earlier.

But the electric-car company has pulled ahead by two years its plan to ramp up annual production of its three-vehicle lineup - including the Tesla Model S sedan and the Model X crossover - to 500,000 by 2018. He has placed his desk at the end of the Model X production line. Although the parts of the electric vehicles remain to be expensive, Musk revealed that the reduced price would be the result of an expected increase of production due to more people buying electric vehicles. The plea came as Tesla confirmed that its vice presidents of manufacturing and production are both leaving the company.

Tesla introduced the updated Model S shortly after unveiling the Model 3. Analysts were expecting EPS loss of ($0.67) on revenues of $1.60 billion. It was its 12th consecutive quarterly loss, and followed Musk's incorrect prediction that Tesla was about to find itself in the black.

Tesla's biggest challenge is scaling up manufacturing to meet customers' demand - and that's why the factory isn't just where Musk is sleeping, it's where Tesla is spending billions of dollars. As TechCrunch reported: "At the same time, in April, the company said it would recall 2,700 Model X vehicles over concerns that its third-row seat could have issues". That would be up from 50,000 vehicles previous year.

Deutsche Bank automotive equity analyst Rod Lache said Thursday in a note the company's "propensity for aggressive projections" suggests it may not reach the 500,000 target by 2018.

Source: Tesla Sets Ambitious Goal: 500000 Electric Cars Every Year Starting 2018