Tesla Model 3 sets new cannonball run record from LA to NYC

Ann Santiago
January 7, 2018

Of the 2,425 Model 3 vehicles produced in the fourth quarter, 793 of them (or almost 33%) were made in the last seven working days of the quarter, according to Tesla.

The company guides a ramp to a weekly rate of "about 2,500 Model 3 vehicles" per week by the end of the quarter, but they pushed their 5,000 per week goal to "the end of Q2". As expected, Model S and Model X production was down in the quarter to make room for the Model 3. "Looks like we can reach 20,000 Model 3 cars per month in Dec", Musk tweeted back in January.

The company said Model 3 deliveries to non-employee customers, "are now accelerating rapidly".

Analysts have again expressed concern over whether Tesla can secure the gross margins on the cars it is aiming for, whether customers will still want the auto, and how slower production rates affect the company's other capital-intensive ambitions.

Image mashable
Image mashable

Tesla said it reduced production of its Model S and Model X in the fourth quarter to put more of its workers on the Model 3. The slowdown may mean the vehicle is tougher and more expensive to manufacture than the company had thought, Brinkman said. As for production, the company says that it achieved a production rate in the last few days of 2017 that translates to "over 1,000 Model 3's per week".

Tesla Inc.'s (TSLA) delivery of its new Model 3 electric auto fleet fell short of Wall Street's estimates in the fourth quarter and reported production issues have clouded public opinion of the company's newest sedan. "Ramping up production levels with a flawed product is foolish".

The Drive editor-at-large Alex Roy and the car's owner, Daniel Zorrilla, drove a Tesla Model 3 across country from Los Angeles to New York City in 50 hours, 16 minutes and 32 seconds, setting another Cannonball Run record for an electric vehicle. It also surpassed its 100,000-vehicle goal for 2017. And factoring the Model 3 out of the equation, Tesla notes that Model S and Model X deliveries alone grew by 33%. Yet in the same period, 63,000 were cancelled, Elon Musk said during Tesla's quarterly conference call in July-a figure he saw as insignificant as it happened over 12 months.

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