Tesla, Free of Model X Production Constipation, Hits 100,000 Unit Annual Production Rate

Steph Willems
by Steph Willems
tesla free of model x production constipation hits 100 000 unit annual production

The stuck cork that was the Model X has finally cleared its supply hurdles, causing Tesla production to hit a new high at the automaker’s Fremont, California factory.

With assembly of that model speeded up, Tesla recently hit a production rate of 2,000 vehicle per week, a knowledgeable source told Electrek — a figure that’s still way off the company’s goal of building half a million units per year within the next 18 months or so.

Okay, that’s a “glass one-fifth full” view, but at an annualized rate of 104,000 vehicles/year, most of the race still needs to be run. Until July 1 rolls around, though, it’s right where Tesla wants to be. In his first-quarter 2016 shareholders letter, company CEO Elon Musk said he wanted to hit the target by the end of June, and crank out a further 50,000 vehicles by the end of the year.

Musk said first-quarter production stood at 15,510 — up 10 percent from the previous quarter, but still held back by production issues of the Model X, which some say is haunted. (Software updates are promised to rid the SUVs of those pesky door-slamming ghosts.)

Going forward, the hundreds of new assembly line workers hired during last month’s job fair should help bump up the production rate. The existing assembly lines still have capacity left, and the company needs extra manpower on tap come next year. If it can’t get 373,000 Model 3 orders filled in a hurry, plebian buyers might throw up their hands and trudge over to the Chevrolet dealership, which they hoped to avoid.

While there’s happy news for Musk on the production front, the CEO has been busy launching nukes lately. Musk even raised the specter of a conspiracy against his company while responding to reports of Model S suspension failure. Some extra time in the sleeping bag might be in order.

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  • VoGo VoGo on Jun 14, 2016

    I wondered why Musk tweaked pricing by introducing a lower priced model, the S 60. Now I see why - he has increased production capacity markedly, and ahead of schedule. What would Detroit do with newfound capacity? Stuff the channel with tens of thousands of unwanted vehicles and dump them on the fleet market. There's a difference.

    • See 2 previous
    • JimZ JimZ on Jun 15, 2016

      @Luke42 It also burns people out and makes them leave. High turnover is bad for a company like this, the continual brain drain and needing to train new people is a huge drag on time and resources.

  • Big Al from Oz Big Al from Oz on Jun 15, 2016

    I believe Elon Musk is dreaming about the number of Tesla's he can manufacture, let alone sell. I do believe Nissan is working on ethanol powered vehicles that will have a 373 mile range. These will be released in 2017. The advantage of the Nissans will be; 1. Can use existing infrastructure for energy/fuel, 2. One fuel load will give the Nissan the range of a normal vehicle, 3. Time to "re-energise" will be rapid, 4. The vehicle will use bio-ethanol, Seems like a far better and more logical solution than batteries. I wonder if Elon Musk's Giga Factory will be left making batteries for the home? I wonder if Tesla and battery vehicles are the way to go? Batteries are not of any value, due to their weight, cost of research, ongoing subsidisation/handouts with no end in sight. I can't see Tesla as a viable business. It might remain a "hobby" and niche product. Is Tesla worth it share price?? Even the Giga Factory might not be able to secure a consistent, reliable source of minerals to make batteries. From Bloomberg today; http://www.bloomberg.com/news/articles/2016-06-14/nissan-spreads-bets-on-future-fuel-with-ethanol-run-electric-car

    • See 4 previous
    • Big Al from Oz Big Al from Oz on Jun 15, 2016

      @derekson I don't see the value in Tesla. It isn't Apple, Google, Facebook or even Uber, actually Tesla will find it a lot tougher than Apple and the others. I'd say if Tesla created an "Uber/AirBnB" model of recharging, that is people can charge their vehicles at people home using a Smart phone to find the nearest charge point and people have the charge points easily accessed Tesla might do better.

  • Dawn Maple They haven't even fixed the airbag issues and recalls completely, so why waste more time and money on another "safety feature" that removes choices from the driver? We would be safer getting in a car driven by Helen Keller. Oh wait with driver assist, all she has to do is find her car and turn it on.
  • Lorenzo I'm out. I'd never find it in the dark.
  • VoGhost Minivans don't sell well, and the market has been declining. And while the entire 'range anxiety' myth is mostly a big oil propaganda designed to scare the weak minded, minivans are often how families travel to grandma's house, so that will be a concern, unless VW can gain access to the Supercharger network. I could see 50K units at peak, declining to 25K/year after a couple of years, unless VW can price competitively with Tesla.
  • VoGhost Glad you're healthy, Tim
  • VoGhost 20 years ago, Sportage was the bottom of the barrel, a joke. Kia's come a long way.