Tesla has met its Model 3 production goals

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Tesla has met its Model 3 production goals

Tesla met its production goals for the Model 3 last week, producing a total of 5,000 vehicles.

Elecktrek obtained an email sent by Tesla CEO Elon Musk to staff congratulating them on exceeding the company’s goal of manufacturing 5,000 Model 3 cars and 2,000 other Tesla vehicles in a single week.
 

Arthur

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Just last week Tom Randall at Bloomberg explained why there's a bit more to this than just production numbers. There's $360 million in federal subsidies at play.

"It's pretty clear that Tesla is likely suppressing U.S. sales as the quarter ends so as to extend its federal electric-vehicle subsidy of $7,500 per car. The question is: How exactly is Tesla going about it, and how will it affect quarterly figures that will be reported in the next few weeks?

The U.S. subsidy will begin to sunset during the quarter that Tesla makes its 200,000th American sale. Two full quarters later, the subsidy is to be halved to $3,750, and two quarters later it’s halved again to $1,875, then it ends. If Tesla can push its 200k milestone to July 1, rather than by or before June 30, it extends the entire subsidy calendar by three months.

Tesla was on track to hit the 200k milestone this quarter, but in June we've seen a marked shift in Model 3 deliveries from the U.S. to Canada. There are other actions Tesla may be taking, including accelerating its overseas deliveries for the Model S and Model X and stockpiling cars at its holding facilities.

Tesla doesn’t report the geographic breakdown of its sales, so it’s not clear how many U.S. deliveries are being postponed. The U.S. subsidy is critical for maximizing Tesla’s total addressable market of car buyers, so even if the number is in the tens of thousands, it's probably worth the effort.

A major push to keep the subsidy—especially by stockpiling cars and increasing the number in global transit at the end of the quarter—could wreak havoc on Tesla’s balance sheet.
"

PS. I'm all for leccy cars, etc, etc. I'm just no fan of having taxpayers help pay for them.
 
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