Elon Musk: Tesla Motors Inc. (TSLA) to Produce 500,000 Cars Annually by 2020


Tesla Motors Inc. (NASDAQ:TSLA)’s CEO, Elon Musk, believes that the giant electric company will be able to produce up to 500 thousand cars annually, by 2020. Appearing on an exclusive interview on Fox Business, Musk reiterated that Tesla would delay unveiling new cars in pursuit of defect-less cars that are super great.

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Logistic and customs issues in China and Europe are some of the challenges that Musk believes may play a big role in hampering the automaker’s dream of ramping up production by 2020. Musk also confirmed that pre-orders for Model X are going on well, having already received orders in the range of 15,000 to 20,000.

“[…] For any new product from Tesla Motors Inc. (NASDAQ:TSLA) that’s actually the most important is, did we get the product right? I’d much rather delay the production, delay the production round until we’ve got the product to be super great than come out early with something that has deficiencies,” said Mr. Musk.

Musk acknowledged that the company could make more money on a short-term if it opted to compromise on quality while accelerating production. Tesla Motors Inc. (NASDAQ:TSLA)’s vehicle popularity and growth has in the past been hampered by lack of enough charging stations, a problem Musk believes will be a thing of the past.

“[…] The rate at which we are establishing supercharge locations is very rapid right now. We are bringing one live every 20 hours on average. So there is a huge number of supercharge locations that are going active,” said Mr. Musk.

Tesla Motors Inc. (NASDAQ:TSLA) has already struck a deal with China Unicom for the construction of up to 400 charging stations as demand continues to grow especially from China.  The states of Massachusetts and New York have already given Tesla the approval to deal with customers directly instead of going through dealers. New Jersey, on the other hand, seems to be a major stumbling block after dealers in the state vehemently turned down tesla push to deal with customers directly.

Jat Capital Management, run by John Thaler owns 948,778 shares of Tesla at the end of the second quarter of 2014.



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