Tesla Model S Production Line Now Running At Full Capacity

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2012 Tesla Model S

2012 Tesla Model S

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For fans of the Tesla Model S all-electric sport sedan, the past few weeks have been full of good news.

Deliveries of top-of-the-line 85-kilowatt-hour models now number in the thousands, the 60-kWh model will go into production this month--and has been rated at 208 miles of range--and no major safety or quality issues seem to have surfaced thus far.

But buried in a news item last week that appeared in trade journal Automotive News was a little nugget we missed during our coverage of last week's Detroit Auto Show.

Tesla Motors [NSDQ:TSLA] has now achieved its full production rate of 400 Model S cars a week, said the company's director of Model S programs, Jerome Guillen.

That means that Tesla should be able to chew steadily away at its list of 15,000 or more reservations for the electric luxury sport sedan, which represents most of a year's production of 20,000 vehicles.

The number of Tesla Model S cars that were actually built last year, and how many were sold, remains a mystery.

So does the company's cashflow and balance sheet, and whether the company is suffering a cash crunch, as a few analysts have suggested based on third-quarter data.

As it ramped up Model S production late last year, Tesla Motors chewed through its cash reserves--including drawing on the last of its $465 million in low-interest loans from the U.S. Department of Energy.

The numbers of cars built and sold, and the revenues and expenses associated with them, will only be public when the company reveals its year-end financials.

2012 Tesla Model S

2012 Tesla Model S

Enlarge Photo

That will happen in an investor call that's expected to take place sometime next month.

But meanwhile, if Guillen's statement is accurate, producing 400 plug-in electric cars a week puts Tesla in the same league as General Motors.

That company is now producing similar numbers (or a bit more) of its Chevy Volt range-extended electric car.

Not bad for a Silicon Valley startup carmaker that didn't exist 10 years ago.

Can the company survive on its own, or will it be sold to a huge global automaker?

We'll be waiting for those financial results to see what they say.


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Comments (11)
  1. The 60 kWh versions are now in the hands of customers, FYI. I should have mine within 2-3 weeks.

  2. Me=Jealous.

    Congratulations. From everything I've read - it's awesome and the owners love them.

  3. Pre congrats congrats! I'm sure it'll be a long 2-3 weeks lol

  4. @John - I have reservation #3902 for a 60 kWhr Model S, and Tesla has told me to expect it this week. It has been a few minutes so I better go check my email...

  5. Tesla has already shipped a number of 60 kWh cars. They began giving those cars to customers at the beginning of last week.

  6. Is Tesla suffering a cash crunch? Well, they were last quarter, but now they should be making $20-$30M per month. Reserves may be low but the future looks bright.

    Elon said that he would not consider selling his shares of the company before their low cost version is on the market. So selling is not out of the question but seems at least 5 years away.

  7. Congrats Tesla! You are the modern embodiment of the American Dream. You have turned the auto industry on its head and created an EV that is desirable.

  8. According to Tesla it would be cashflow positive at sales of just 8000 units/year so with production on target for 20K units and every unit sold Tesla should be extremely cashflow positive making suggestions of an impending cash crunch seem rather sensationalist.

    Also the question of Tesla's ability to survive seems rather poorly timed when it appears to be only months away from selling out its entire 2013 production run, nor will this quarter's financial results say all that much if anything about Tesla's future. At the end of this year we will know if Model S production is profitable or not for Tesla and whether demand stays strong. That's when we'll have a clearer picture about Tesla's chances as an independent carmaker.

  9. "Can the company survive on its own, or will it be sold to a huge global automaker?"

    Well, Toyota and Benz already invested in Tesla, didn't they? I assume they hold some % shares of the company...

  10. China would outbid anyone if they need a buyer...


  11. I can think of few things that would destroy my enthusiasm for the company quicker.

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