February 24, 2017
The supply chain for Tesla, Inc. is beginning to solidify, even though there’s work to be done to meet an aggressive production plan for its new Model 3 sedan. Improvements and refinements, beyond removing the word “motors” from its name, are helping to get the electric auto manufacturer closer to its annual delivery targets.
In Q4 2016, Tesla delivered 22,000 vehicles, its second highest output ever, and recorded 27% year-over-year growth for the quarter. That production performance shows just how far it has come to iron out supplier issues and delays.
Yet, the company still fell roughly 4,000 vehicles short of its goal of delivering 50,000 units in the second half of 2016. Tesla must ramp up even more at its Fremont, CA factory, and perhaps raise more capital, to reach its annual production goal of 500,000 cars next year, which is nearly six times the current rate.
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