Tesla achieves 25,000 annualized run rate

[neroden]

Back to that article on the frunk parts, I contacted the author for his source (before elon confirmed) and he said it was the manager at the frunk part factory. So what I think has been neglected to say is, not only are they producing 25,000 a year right now, they will be producing 33,500 a year in the fall. The only thing I am confused about is why Elon said they weren't going to increase production rate in the Q4 conference call and now they are by 25% and soon to be by 60%. That is a considerable amount, why would he change his mind?

Remember, during the early part of the Model S production there were severe problems with supply shortages. It's possible that the increase in orders from suppliers is not all about a planned increase in car production; it is possible that Tesla has decided to build up parts inventory, so that it can ride out any supply disruptions in the future. This would also make it easier to provide replacement parts for repairs. Tesla has an enormous amount of empty factory space, so the cost of stocking some inventory on cheap parts like fabric is not that high.

 

[GSP]

Back to that article on the frunk parts, I contacted the author for his source (before elon confirmed) and he said it was the manager at the frunk part factory. So what I think has been neglected to say is, not only are they producing 25,000 a year right now, they will be producing 33,500 a year in the fall. The only thing I am confused about is why Elon said they weren't going to increase production rate in the Q4 conference call and now they are by 25% and soon to be by 60%. That is a considerable amount, why would he change his mind?

Maybe Elon changed his mind because durring Jan-Feb they had succeeded at getting the factory running smoothly at 400/week, and got their margin to a good value (would not have to be at 25% goal, but a nice profit). At that point getting more units out would be the best path to Q1 profitability. Also, if every delivered car results in 2-3 more orders, then it also is more good advertising for zero cost (actually negative cost!).

GSP

 

[blakegallagher]

I think that if more options were available (parking sensors, power folding mirrors, ACC, AWD) Tesla could double the 20,000 number.

now they have added at least one of the options on your list ... and I agree they will double that number !