Tesla said on Tuesday it had produced 34,494 vehicles in the first quarter this year, up 40 percent from the same time last year. The figure included 9,766 of its mass-market Model 3 cars, reports Market Watch.
Tesla said it was able to double the Model 3’s production rate during the first quarter by addressing supply bottlenecks and upgrading equipment.
Tesla produced 2,020 Model 3s last week and plans to produce another 2,000 this week, as well as 2,000 Model S and Model X cars.
The company had been damaged in the past week or so by speculation over its financial stability and the crash of the Model X last month in California that killed the driver. When you add in the recall of 123,000 older Model S cars over the possibility of a rusty bolt, Tesla has taken quite a hit.
Tesla stocks have fallen 15 percent since the start of the year. The 15-year-old company’s first quarter filing this morning – released just before the market opened, pushed Tesla stocks up 3.0 percent to $259.54 in early trading.
“Tesla continues to target a production rate of approximately 5,000 units per week in about three months, laying the groundwork for Q3 to have the long-sought ideal combination of high volume, good gross margin, and strong positive operating cash flow,” Tesla said.
“As a result, Tesla does not require an equity or debt raise this year, apart from standard credit lines.”
Analysts with brokerage firm Evercore ISI said that while the Model 3 production figure of 2,000 falls short of the 2,500 a week Tesla had promised, it is better than what most people on Wall Street had expected — and clearly shows signs of progress versus where the company stood at the start of the year, according to Reuters.
