suggested by Tesla fans on the\u00a0Internet<\/a>. <\/p>\n\n\n\nThe company recently released the model designs of its Model 3 and Model X vehicles, sharing with its fans how the vehicle was shaped.<\/p>\n\n\n\n
Big Question: How Will Tesla Deliver These Huge Pre-orders by 2017<\/h3>\n\n\n\n When it comes to delivery, Tesla does not have a strong suit for meeting deadlines. The company missed its 2014 delivery guidance, and barely met last year\u2019s delivery guidance of over 50,000, due to production issues related to the Model X crossover.<\/p>\n\n\n\n
Moreover, the automaker was not able to meet last quarter\u2019s delivery guidance of 16,000 units, as it reported total deliveries of 14,820 units. The shortage of deliveries was again a result of slow Model 3 production, as the company ran into supply parts constraints in the first two months of the year.<\/p>\n\n\n\n
A slow delivery start to the year raised several eyebrows amongst the Street analysts on the company\u2019s execution abilities related to Model 3. Since it has been merely selling 50,000 cars annually, a rapid transition to half a million cars by the end of this decade will take a long way to go.<\/p>\n\n\n\n
However, one analyst thinks that Tesla is not likely to have much trouble meeting the mountain of Model 3 pre-order backlog. This is because the vehicle is made with a \u201cproduction first\u201d mindset, unlike the one for Model X crossover SUV. The automaker has even learned from its mistakes made in the Model X launch, as the company tried to launch the vehicle filled with too many options, delaying deliveries. Such mistakes will not be repeated on Model 3.<\/p>\n\n\n\n
Additionally, over 60% of the Model 3 body is made of steel, with the remaining from aluminum and plastic polymer, making the production process simple and straightforward. Because of the single Complete Glass extending from windscreen to rooftop, there are fewer chances of manufacturing errors, compared to a car with a metallic roof. <\/p>\n\n\n\n
As a result, Model 3 will need three times fewer suppliers than Model S, making the car ready to hit roads by the fourth quarter of 2017, falling within the deadline.<\/p>\n\n\n\n
The Palo Alto-based automaker even clarified its delivery structure by saying, \u201cIn order to be as fair as possible, there will be a different queue for each region.” Staggering deliveries in this way also allow us to provide the best possible customer experience. ” <\/p>\n\n\n\n
This hints that every regional market may not get the Model 3 delivered at the same time, but surely we can expect the first deliveries to begin in our home country. The company said: \u201cIt is not possible to ship to all regions [of the world] simultaneously because regulators in each part of the world have slightly different production requirements.”<\/p>\n\n\n\n
Production Ramp Expected Soon?<\/h3>\n\n\n\n In order to meet over 300,000 Model 3 pre-orders and the launch deadline, Tesla definitely needs to make heavy expansionary decisions. The company currently has only one production plant in Fremont, which, according to Mr. Musk, has the capacity to produce 500,000 cars per year, as It has done previously. But if Tesla is really looking forward to making its mass-market car cheaper across the globe, it needs to build a few international production plants.<\/p>\n\n\n\n
Earlier this week, Tesla was offered a production plant site in France. The place is currently located close to the border of Germany and France, and the site belongs to a nuclear facility that is scheduled to shut down by the end of this year. <\/p>\n\n\n\n
According to French Energy Minister Segolene Royal, Mr. Musk has not completely rejected the idea to open a production plant there. This could be Tesla\u2019s first production facility in Europe, as the company progresses to become a mass market auto seller from presently a niche luxury automaker.<\/p>\n\n\n\n
Similar reports were also circulated in China. In January, prior to Mr. Musk\u2019s visit to Hong Kong, he said that he is looking forward to opening a local production plant in China as it is a lucrative market space to capture amid governmental support. <\/p>\n\n\n\n
Considering its luxury cars get a drastic price jump in China due to heavy import taxes and shipping costs, Tesla aims to make its cars affordable in China by finding a local joint venture that can help to open a local production facility. <\/p>\n\n\n\n
According to several media reports, the China factory is expected to open as soon as the second half of this year.<\/p>\n\n\n\n
Since small, low-range EVs are popular in China, Tesla will be able to disturb the local market by launching cheaper cars that run over 210 miles on a full battery charge. Local EVs from Zotye, BYD, and Kandi is often criticized for having low drive range, causing range anxiety. <\/p>\n\n\n\n
But if Tesla is able to restrict Model 3 costs in China through local production, it is likely to capture the world\u2019s largest auto market. A production plant in China will also cater to the delivery requirements of Asian markets for Tesla.<\/p>\n\n\n\n
Tesla Motors stock closed on Friday at $250.07, down 2.77%. So far this year, the stock has jumped over 5%, mainly due to the hype around Model 3. Meanwhile, the S&P 500 Index has lost nearly 0.70% since the start of the year.<\/p>\n","protected":false},"excerpt":{"rendered":"
Tesla Motors is thinking of ramping up its auto production after the masses have shown trust in Tesla\u2019s cheaper EV. According to the latest figure provided by Tesla Motors Inc. (NASDAQ: TSLA) chief executive Elon Musk, the total Model 3 pre-orders stood at 325,000 as of Thursday. Mr. Musk was quick to boast these overwhelming … Read more<\/a><\/p>\n","protected":false},"author":2,"featured_media":9200,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[6],"tags":[],"yoast_head":"\nWith 325K Model 3 Pre-orders, How Tesla Motors Plans to Transition into Mass Market Player - Business Finance<\/title>\n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n\t \n\t \n\t \n