Tesla Expects to Make 60,000 Vehicles in 2015

Aug 04, 2014 02:30 PM EDT | Matt Mercuro

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Tesla announced this weekend that it expects to make over 60,000 vehicles in 2015, after spending a lot of money this year to update and expand its Fremont assembly plant.

Chief Executive Officer Elon Musk also announced that the company will fund 40 percent to 50 percent of the estimated $4 billion to $5 billion cost of building a new "gigafactory" to produce cheaper and more efficient battery packs for its future electric vehicles, including the Model 3 vehicle, due in 2017.

The Model 3 will be available for $35,000.

Tesla confirmed on July 31 that it lost $61.9 million, or 50 cents a share, in the second quarter, as revenue almost doubled to $769.3 million, according Reuters.

The automaker decided to expand the Fremont plant, which produces the $70,000-plus Model S sedan, in order to make a companion crossover, the Model X, in spring 2015.

The automaker expects to deliver around 35,000 Model S sedans this year.

Last week Tesla also announced a partnership with Japanese electronics company Panasonic to open a battery factory in the U.S. by 2017.

Musk said Tesla broke ground near Reno, Nevada for a possible factory, but added the company is still in negotiations with other states. A final site selection will be made later on this year.

He said to analysts that Panasonic will fund around 30-40 percent of the factory, and other smaller suppliers around 10-20 percent.

Musk said the initial cost to get the factory running would be under $4 billion, and the total cost would be around $5 billion by full production in 2020.

Tesla manufactured 8,763 Model S sedans in the quarter, and delivered 7,579 cars to customers, both new records, while being "unable to keep pace with increased demand" in North America and Europe, according to Musk.

The automaker expects to deliver approximately 7,800 cars in the third quarter. It projects fourth-quarter deliveries will double to more than 13,000, thanks to the plant expansion. 

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