Tesla Motors (NASDAQ:TSLA) is advancing its production plan of 500,000 electric vehicles including Model S, Model X, and Model 3 by two years to 2018, according to its CEO Elon Musk and CFO Jason Wheeler in a letter to shareholders.
The company also affirmed its plan to deliver 80,000 to 90,000 new electric vehicles this year. Tesla also stated that it is on track to achieving its goal to produce the first cells at its Gigafactory in the fourth quarter of 2016.
Tesla also emphasized the overwhelming demand for its Model 3 as it received 325,000 reservations in the first week of its introduction. The figure implies around $14 billion in future sales.
“With Model 3, our mission of accelerating the transition to sustainable transportation is more achievable than ever,” wrote Musk and Wheeler.
The orders for the Model S increased 45% while the Model X reservation conversion rate supports the company’s delivery target this year.
The stock price of Tesla closed $222.56 per share on Wednesday, primarily due to the report that the company’s two top manufacturing executives are leaving. However, the stock traded higher during the extended trading after the company released its first-quarter financial results.
Tesla financial results
Tesla reported that its financial performance improved in the first quarter of 2016. The company’s non-GAAP operating expenses declined 3% to $417 million and capital expenditures dropped 47% to $217 million.
The company’s cash and cash equivalents increased to $1.44 billion by the end of the quarter.
Tesla said its non-GAAP revenue increased more than 45% to $1.6 billion. Its non-GAAP automotive revenue was $1.48 billion and Services and other revenue was $121 million.
During the quarter, the electric car manufacturer recorded a non-GAAP to $75 million or $0.57 per share, down 34% sequentially. On a GAAP basis, Tesla’s net loss was $282 million or $2.13 per share.
Tesla’s to priority is to increase high-quality production
The electric car manufacturer achieved a new production record of 15,510 units during the quarter, up 10% sequentially. The Model S production was 12,851 units and the Model X production was 2,659 units.
In the second quarter, Tesla expected to produce around 20,000 electric vehicles, an increase of 30% sequentially. The company estimated its deliveries to be around 17,000 units due to a large number of vehicles in transit to customers in Europe and Asia at end of quarter.
Musk and Wheeler said, “We are making significant progress in increasing production and plan to continue increasing total vehicle production to support over 50,000 deliveries in the second-half of this year. Continuing to ramp high quality production is the top priority at Tesla right now.”