Electric automobile maker Tesla Motors revealed on Wednesday that it has now accelerated its car manufacturing plans by two years, showing how the company wants to invest even more cash into aggressively growing, while potentially compromising earlier earnings.
Tesla had planned making 500,000 cars– consisting of the Model S, Model X and Model 3– by 2020. However it now says it will meet that goal by 2018.
The report follows a deluge of reservations for Tesla’s just recently unveiled traditional electrical vehicle, the Model 3. The Model 3 won’t be delivered to clients till the end of 2017. Musk stated on the earnings call that he might expect 100,000 to 150,000 of those vehicles to be made up by the Model S and X, where as 300,000 to 400,000 of those automobiles may be made up by the Model 3.
Tesla new objective could be tough for it to attain thinking about the company has actually struggled producing the Model X, its electric SUV. The firm acknowledged that fulfilling the new goal “will be challenging”.
Financiers, nevertheless, were positive, sending Tesla’s shares TSLA 0.80% increasing 5% in after hours trading on Wednesday to $234.