Tesla Inc TSLA could achieve its ambitious delivery goal of 500,000 vehicles in 2020, having achieved the targets it set for two of its vehicle models.
What Happened: Tesla has already achieved the targets for deliveries of its Model S and Model X, its older premium models, according to an Electrek report.
The company is now reportedly focusing on bumping up production of its mass market model, the Model 3 sedan, and the Model Y crossover utility vehicle launched this year, the report said.
Tesla is reportedly looking to quickly deliver these models locally, mainly in California and China, in a bid to reduce transit time and hit the high bar of 181,000 for the fourth quarter.
In the third quarter, the company delivered 15,200 Model S/X vehicles and 124,100 Model 3/Y vehicles for a total of 139,300 versus production of 145,036 vehicles.
Elon Musk reportedly said in an email to employees last week that production needs to be increased for the remainder of the quarter as much as possible to meet the rising demand.
Related Link: Analyst Says Tesla's $5B Stock Sale Is Smart Strategic Move
CNBC reported last week, citing an email to employees, that Tesla is planning to shutter production of Model S and Model Y vehicles for 18 days beginning Dec. 24.
The company reportedly offered the employees in the production line of these models a week of pay, along with a few paid holidays, while also asking them to volunteer in other parts of the business for the remaining unpaid days.
It is speculated that the shutdown may have to do with some planned refreshes or upgrades to these models.
Click here to check out Benzinga's EV Hub for the latest electric vehicles news.
Why It's Important: Tesla usually does a quarter-end push to meet targets set for the three-month period.
With Musk highlighting the "high-class problem" of demand exceeding the company's production capabilities, the question of how well the EV maker can ramp production remains.
TSLA Price Action: At last check, Tesla shares were up 4.18% to $635.50.
Related Link: Nio Prices Upsized 68M Share Follow-On Offering At 7% Discount
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
