Tesla Q2 2018 Vehicle Production and Deliveries
When you read through the announcement and you realize that this is a company that even if it doubled it&#x27;s current production rate it would still have orders for the close to a year&#x27;s production, then you have got to pause and be amazed.<p>How many Model 3s could Tesla produce at its current facilities? 7,000? 10,000? 15,000? It wouldn&#x27;t be enough to remotely satisfy the demand.<p>Truth is that once delivery picks up, more people will start to order since currently people like me think it&#x27;s pointless to order a car that you would have to wait a year to get and that - in most parts of the world - you can actually not order yet. The orders are likely to increase proportionate to the production capacity as Model 3 will be made available around the world.<p>This company could build 3 Giga Factories around the world that each produce 10,000 Model 3s per week and demand would still not be met. Heck, they could have 10 Giga Factories and they might still not satisfy demand for Model 3.<p>And then there is the future demand for Model Y and - once they get economy of scale and battery prices go down a bit - demand for cheaper, smaller cars.<p>All this demand could be met by other car manufacturers if they too produced long range EVs of similar or better quality than combustion engine cars. But no-one does and no-one will for an other year. Don&#x27;t say Nissan Leaf; it&#x27;s not long range. And when they finally do, in 2-3 years or so, are you going to take a chance on one of the first competitive EVs from VW, Mercedes, BMW, Ford, General Motors, Hyundai, Fiat, Toyota or Mazda or are you just gonna stick with Tesla, which by then comes with even better specs than today?<p>Tesla is the Apple of the car world. There is still room for other producers to make the Android cars that spend 3-4 year playing the catch up game of being one-two models behind in specs, and then maybe finally catch up in 5-10 years. But Tesla will get the better customers and the fat margins if the traditionalists don&#x27;t hurry. And hurry a lot.