Elon Musk has frequently admitted to the ‘production hell’ Tesla is going through in trying to make its hugely anticipated Model 3 car.
But now, it appears the end may be in sight for the firm – and for owners who put down a $1,000 deposit for the revolutionary car.
The firm has begun asking customers to specify exactly what they want in the car, promising those who choose a high end model will get it this year.
The ‘golden ticket’ email that allows users to finally specify exactly what features they want in their Model 3
Tesla confirmed to Elektrek that the latest batch of invitations included non-Tesla employees for the first time.
It is believed over 500,000 people have preordered the car, putting down a $1,000 deposit, and Musk has said the firm is getting an average of 1,800 new orders a day.
Those lucky enough to be configuring their orders now are being told that they will take delivery by the end of the year.
One existing Telsa owner, You You Xue, who already has a Model S is based in San Francisco and ordered his Model 3 the day preorders opened, posted his invitation to Twitter.
The new ordering site explains that only the high end car with a long range battery, rear wheel drive and premium upgrades, costing $48,000 will be made first
Users are taken through several steps to choose exactly what they want, including this screen to choose color and the type of wheels
The step forward comes at a make or break time for Tesla.
It racked up a $619 million loss in the third quarter, its biggest-ever, driving its shares sharply lower as the electric-car maker spends to speed up production of its more affordable Model 3 sedan.
The company, led by Silicon Valley star Elon Musk, also confirmed it had missed its Model 3 production goal for the third quarter, producing only 260 vehicles compared to an earlier estimate of 1,500.
The site walks users through every available option. Here, they can choose the firm’s autopilot for $5,000, with a $3,000 option to add full self driving capabilities when they are available
To get their car as soon as possible, users must choose the long range battery, a $9,000 option, and the premium upgrade package that includes heated seats and an upgraded stereo, costing $5,000
The company said it had $3.53 billion in cash and cash-equivalents as of Sept. 30, compared to $3.04 billion at the end of the second quarter.
Tesla said last month it delivered 26,150 vehicles in the third quarter, a 4.5 percent rise on the same period of 2016, but added that “production bottlenecks” had left the company behind its planned ramp-up for the $35,000 Model 3.
During its most recent results call, it said it now hoped to achieve a production rate of 5,000 per month by the end of the first quarter of next year, pushed back from the end of this year.
Elon Musk confirmed it had missed its Model 3 production goal for the third quarter, producing only 260 vehicles compared to an earlier estimate of 1,500
Elon Musk has likened future versions of Tesla’s Model 3 production line to an ‘alien dreadnaught’ -but has admitted the firm is ‘in production hell’
It said automotive gross margin, which excludes the sale of zero emission vehicle (ZEV) credits, fell to 18.7 percent from 25 percent last year.
Analysts on average had expected margins of 18.4 percent, according to FactSet.
Led by Silicon Valley entrepreneur Elon Musk, Tesla is struggling to overcome production bottlenecks as it builds the Model 3, seen as key to the company’s long-term profitability.
The company said in October it missed its Model 3 production goal for the third quarter, producing only 260 vehicles compared with an earlier target of 1,500, and Musk said last month the car was “deep in production hell”.
Tesla posted a net loss of $619.4 million, or $3.70 per share, for the third quarter ended Sept. 30 compared to a profit of $21.9 million, or 14 cents per share, a year earlier.
Revenue rose 30 percent to $2.98 billion. Excluding items, the company lost $2.92 per share.
HOW THE MODEL 3 WILL BE MADE
Elon Musk has likened future versions of Tesla’s Model 3 production line to an ‘alien dreadnaught’ – and last week the first pictures of the factory emerged.
A Reddit user claiming to work for robot making company Kuka posted the images of what he says are 467 robots being delivered to the car-making firm’s California HQ.
The photos show a large shipment of unmounted robots that will form part of the ambitious production line.
SoutheastTraders forum user Mac11FA, via the Tesla subreddit, said he is a Field Service Engineer for Kuka Robotics.
The robots captured in the photos appear to be largely manufactured by Augsburg, Germany-based Kuka robotics, according to Teslarati.
The robots, each costing anywhere between $50k to as much as $500k can manage multiple tasks by switching adapters and moving across multiple axes.
The first 30 models were handed over to customers during a glitzy ceremony at the company’s factory in California last Friday. It came two days after the environment secretary Michael Gove announced a ban on the sale of petrol and diesel cars from 2040
‘Kuka is the world’s leading provider of production systems in the automotive industry,’ the firm boasts on its website.
‘With years of experience, we are the master in the design of flexible and efficient production processes.’
Tesla starts production of the Model 3 in later this week.
The company’s desire to move beyond its current position as a niche maker of luxury cars largely rests on the Model 3.
The lower-cost model, which will start around $35,000, is set to go on sale later this year.
Tesla said it is preparing its factory in Fremont, California, to produce 5,000 Model 3 sedans per week sometime before the end of 2017 and 10,000 per week at some point in 2018.
Palo Alto, California-based Tesla is also expanding its network of stores and charging stations to meet anticipated demand.
Tesla said it plans to open 100 retail and service locations worldwide this year, including its first stores in Dubai and South Korea.
It also plans to double the number of fast-charging Supercharger stations to 10,000.