Tesla gives update on Model three following launch: 1,800 reservations per day, Fremont production moving forward, Gigafactory

– Aug. 2nd two thousand seventeen Four:55 pm ET

With the release of its 2nd quarter two thousand seventeen after market close today, Tesla gave several updates on its Model three program following the launch last week.

The company says that the response to the vehicle has been “staggering” and now they put their efforts into producing the product.

In its shareholders letter, the company gave some insights into the current access to the Model three online configurator:

“Since the handover event last week, we are averaging over 1,800 net Model three reservations per day. We opened the Model three configurator to the thousands of our employees with reservations so they could begin ordering their vehicles. Soon, non-employee customers will begin receiving invitations to order their cars in puny groups based on when they placed their reservations, with existing Tesla owners receiving very first priority. Deliveries to non-employees will begin in Q4.”

1,800 fresh reservations per day would mean about 9,000 since the launch, which may not seem like much, but that’s net of cancellations and some were claiming that Tesla would see a lot of those following the event, which either didn’t happen or Tesla got enough fresh orders to balance it out.

Tesla also collective some information about the manufacturing process:

“At our Fremont factory, the fresh Model three bod welding line and multilevel general assembly line are very dense and automated. This densification sets the stage for us to produce over 500,000 Model three vehicles annually. Model three drive units as well as battery packs made with our proprietary two thousand one hundred seventy form factor cells are being built on fresh lines at Gigafactory 1. We are now fine-tuning these manufacturing lines to significantly increase the production rate.”

They collective a picture of the Model three Figure Welding Line:

After delivering the very first few cars last week, Tesla now says that it aims to supply toughly 1,500 Model three vehicles during the current quarter (July through September):

“Based on our preparedness at this time, we are certain we can produce just over 1,500 vehicles in Q3, and achieve a run rate of Five,000 vehicles per week by the end of 2017. We also proceed to plan on enhancing Model three production to Ten,000 vehicles per week at some point in 2018.”

The company expects Model S and Model X to remain the main sale drivers for the 2nd half of the year. To alleviate concerns that the launch of Model three would slow down sales of its flagship vehicles, the company disclosed that the “weekly net order rate for these vehicles was about 15% higher than the Q2 average weekly order rate.”

The vehicles will help fund the production expansions for Model Trio. The company disclosed having spent $959 million in Q2, as they invested in “Model three capacity in Fremont, in Gigafactory 1, and in the expansion of their customer support infrastructure.”

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