The company said in October that its China sales have been hammered after Beijing raised tariffs on imports of USA autos to 40 percent in July. During the latest quarterly earnings call, Tesla CEO Elon Musk shared the Model Y production plan with investors.
"Barring unexpected challenges" with the planned factory in Shanghai, the company said, the added assembly lines could bring weekly Model 3 production to 10,000 sometime between October 2019 and June 2020. The EV maker delivered 140,000 Model 3 units in 2018.
Tesla has been plagued with production issues for their current Model 3 production line, so investors were unsurprisingly a bit anxious that the Model Y would have similar issues.
The company estimated that Model 3 production at its Freemont plant will rise to 7,000 cars, and its Shanghai factory will build 3,000 Model 3s weekly by year's end.
The Model Y is expected to be received warmly and will have more demand than any of Tesla's other vehicles, since customers across the world continue to move away from cars to crossovers.
Deepak Ahuja had rejoined Tesla in 2017, replacing then-CFO Jason Wheeler. Tesla said it was working through its Model 3 backlog without clarifying further. (NASDAQ:TSLA) Stock - Live Trading News" on January 29, 2019, "Tesla lower with China news in the mix - Seeking Alpha" with a publish date: "January 03, 2019, "Nasdaq 100 Movers: "TSLA, JBHT - Nasdaq" and the last "Tesla: "The Autonomy Thesis - Seeking Alpha" with publication date: "January 02, 2019. Musk said the company has revamped a system in which spare parts were stored at regional warehouses.
Meanwhile Tesla, which is already seeing margins on its cars come under pressure as it looks to sell more comparatively affordable models, is now contending with the possibility of a global economic slowdown.
Model 3 deliveries during the quarter were 63,359, up from 1,542 in the year-ago quarter and 56,065 in Tesla's third quarter of 2018. Tesla last disclosed in May that net Model 3 reservations - accounting for new orders and cancellations - exceeded 450,000. Tesla said Wednesday it enjoyed its second consecutive profitable quarter during the final three months of 2018, and Musk said he anticipated the company would turn a profit in every quarter this year.
Fiduciary Trust Co. grew its position in shares of Tesla Inc (NASDAQ:TSLA) by 22.3% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. As a result, the federal electric vehicle tax credit will be lowered to $3,750 new Tesla purchases after the January 1st, 2019.
Musk predicted that 2019 would be "an incredible year for Tesla", and that the days of Tesla reporting losses are in the rear-view mirror.
Ahuja, a seasoned auto industry finance executive with 15 years experience at Ford Motor Company, joined Tesla Motors as its first CFO in 2008.