The electric car market is currently extremely tough, and many people still don’t have much faith when it comes to companies that manufacturer just electric vehicles such as Tesla Motors. However, it was announced yesterday that the company has actually achieved a massive $11.2 million in profit and produced over five thousand Model S units. Discussing the success of the company, founder and CEO Elon Musk said: “They didn’t believe we’d do these numbers so they didn’t quite tool up for the forecast we gave them. Some thought we’d only do 3,000 for the whole year. Uh, we did that last quarter. That will deliver significant cost savings once they tool up fully.”
“As our manufacturing processes stabilized and our supply chain continued to mature, we turned our attention to improving execution. In the process, we reduced the hours required to build a car by almost 40% from December to March. Our focus has been on operating efficiently as a company. We also want to have really good service. We’re working really hard on making our service great. We haven’t really tried to push volume super hard yet. I think you need to make sure the house is in order before you do that.”
“We want to make sure we’re building the vehicle as efficiently as we can, and we want to have great service. I think the depth of demand is higher than we originally thought. We don’t want to ramp volume and not taken care of gross margin or service. I still think we’ll exceed what most people think we can do.” Musk went on to say that even though the company is focussing on the Model S right now they will start to develop the new Model X next year, and added: “We are making progress on Model X. We are finalizing the design, internal ergonomics, exterior shape. It will become top focus at the end of this year.”
“We are thinking of reducing the deposit number. We don’t really need the cash at this point and the $5,000 has credit card pricing fees on it. We haven’t made a final decision on that, but we’re thinking about it.” It’s great to see that a prominent electric car manufacturer becoming more successful, and hopefully this will lead to car insurance quotes for electric cars becoming cheaper and more electric vehicles being seen on the road in the near future.