Tesla Prepares to Boost Production

Date: July 10, 2019
Source: Bloomberg

WASHINGTON -- Tesla is getting ready to increase electric-vehicle production, according to an internal email, after achieving record deliveries in the second quarter.

The company is "making preparations" to raise output at its plant in Fremont, California, Tesla's automotive president, Jerome Guillen, said in an email to employees on Tuesday. "While we can't be too specific in this email, I know you will be delighted with the upcoming developments.'

A copy of the email was seen by Bloomberg. A Tesla spokeswoman did not immediately reply to a voicemail or an email seeking comment.

Tesla handed over 95,200 vehicles to customers globally in the three months that ended in June, exceeding the previous best mark of 90,700 reported for the last quarter of 2018, easing concerns over demand for the company's cars.

Tesla makes all of its vehicles at its lone auto assembly plant in Fremont, but produces battery packs and drive units at its gigafactory near Reno, Nevada.

Tesla's shares have sunk 31 percent this year, cutting the company's market value to $41 billion.

Guillen's message also said that the company "hit new records in all production lines for output and efficiency" in the most recent quarter, both in Fremont and in Nevada, and that "quality is also reaching record highs."

China production

Tesla has said it plans to produce "significantly" more than the 360,000 to 400,000 vehicles the company expects to deliver in 2019.

Production may reach 500,000 vehicles globally this year -- if Tesla's factory near Shanghai can reach "volume production" early in the fourth quarter, the company said in its most recent quarterly letter to shareholders.

According to Guillen's email, many parts of the assembly line in China are already in place.

"The Stamping, Body, Paint, and General Assembly lines in China are well underway and hitting records in both line design and fabrication," the memo said.

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