Tesla's Elon Musk Wants to Double Current Vehicle Production by End of Q3

Tesla's Q2 production totaled 53,339 vehicles, the majority of which were Model 3s.

Tour of Tesla Factor in Fremont, California
The Washington Post—The Washington Post/Getty Images

Tesla CEO Elon Musk circulated an internal memo that revealed an expectation to double Q2 vehicle production in Q3. The company memo was later published by the automaker on Friday.

Tesla's Q2 production totaled 53,339 vehicles, the majority of which were Model 3s, at 28,578 manufactured (53.6 percent). Weekly Model 3 production surpassed 5,000 units for the first time at the end of July, and Tesla is thought not to have looked back since, with an independent estimate of Model 3 sales exceeding 20,000 in August.

If Tesla has been able to maintain the same production momentum it showed in the twilight of Q2, production of Model 3s at the end of Q3 is likely to total more than 65,000, a total of 13 weeks elapsing between the quarter's start and end. In the company's Q2 earnings report, however, Tesla projected a more conservative 50,000 to 55,000 Model 3s throughout the quarter, despite plans to escalate Model 3 output to 6,000 cars weekly by the end of August, according to Business Insider.

GETTY

Tesla vehicles en route to their new owners.

"We are about to have the most amazing quarter in our history, building and delivering more than twice as many cars as we did last quarter," Musk stated. "Results are what matter and we are creating the most mind-blowing growth in the history of the automotive industry. Even the Ford Model T, which held the world record for the fastest growing car in history, didn't grow as fast in sales or production as the Model 3."

Nevertheless, Musk's statement as quoted suggests Tesla will steamroll its expectations for the quarter. Adding Q2 sales of Model X and Model S sales—combining for 24,761 vehicles—to the above, more liberal estimate yields almost 90,000 total sales, still falling short of the 106,678-vehicle production required for Tesla to achieve its target. Model S and X sales will too need to balloon by more than 60 percent unless Tesla's new Model 3 production target has been conquered by margins larger than expected.

Tesla announces its production and sales quarterly, so official numbers will come forward at the beginning of October.