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[YesAuto News] On the evening of July 2nd, Beijing time, Tesla achieved a production target that has attracted much attention from the industry in the second quarter of this year. It produced 53,339 electric vehicles, an increase of 55% from the first quarter. Pull has the highest production capacity in the quarter since its establishment. Among them, Model 3 accounted for 28,578 vehicles, and Model S and Model X accounted for a total of 24,761 vehicles. The total delivery volume in the second quarter was 40,740.

Tesla's production capacity
time Model 3 production (vehicles) Total production (vehicles) Total delivery (vehicles)
2018 Q1 9766 34494 29980
Second quarter of 2018 28578 53339 40740
Tabulation: Autohome New Energy Channel (Data source: Tesla Financial Report)

The reason why Tesla's production is concerned is that Model 3 production capacity will affect the trend of Tesla's stock price. Whether Tesla can continue to maintain its high production and thus promote positive cash flow is critical to the survival and development of this company.

Model 3 is Tesla's first affordable electric car, and Tesla hopes to gain market share through this car and achieve profitability. As early as March 31, 2016, Tesla Model 3 officially opened global pre-orders. It received 180,000 orders within 24 hours. The order volume reached 400,000 units a week later. The prospects are impressive.

However, Model 3 production failed to meet the target, which became the biggest problem that plagued Tesla. The weekly production target of 5,000 vehicles has been postponed from December last year to June this year. Beginning in April this year, Tesla CEO Musk was personally responsible for the production of Model 3, and said on Twitter, “I went back to sleep in the factory.”

On July 1, Musk announced that the company had achieved its goal of producing 5,000 Model 3s a week in the last week of June. Musk also said, “Next month, the output of Model 3 is expected to reach 6,000 vehicles per week, and Tesla has finally become a real car company.”

There are still about 420,000 Model 3 order users waiting to be delivered, and Tesla has delivered a total of 28,386 Model 3s so far. Just last week, Tesla Motors sent e-mails to all Model 3 subscribers in North America, informing them that they are ready to design and order their own cars, and deliver them “as soon as possible in 2-4 months.” Originally, these users had prepaid a deposit of $1,000, but now Tesla requires an additional deposit of $2,500 to turn their reservation into an order. This move may help Tesla achieve profitability this year.

Cash flow is a key step for Tesla to achieve profitability. Since going public eight years ago, Tesla has only achieved profitability in two quarters. When the second-quarter earnings report was released, Tesla reiterated its outlook for net profit and cash flow in the third and fourth quarters according to US GAAP, although the company will face a weaker U.S. dollar and higher tariffs on imported cars and parts. The negative pressure brought about.