November 04, 2015

Gigafactory will be making battery cells by end of 2016 and Model 3 will make debut March 2016

Tesla Motors – Third Quarter 2015 Shareholder Letter indicates the Model 3 unveiling is planned for late March 2016

* In Q3, global Model S orders increased by more than 50% from a year ago, and grew at a faster pace in North America, Europe and Asia, than during Q2

* The Model X electric SUV was launched.

In addition to the unique falcon wing doors that improve vehicle access and a panoramic windshield that transforms the interior of the cabin, our internal crash testing shows that Model X should receive the best ever safety ratings for an SUV. Model X also has ludicrously fast acceleration and hospital-grade cabin air quality - all in a vehicle with an estimated EPA single charge range of up to 257 miles for the 90kWh pack option

Version 7.0 software released over the air in October has delivered a significant visual update to the digital displays of the entire Model S fleet. The release also enabled Autopilot on about 40,000 Model S and Model X vehicles globally, giving these cars the ability to steer within a lane, change lanes with a tap of a turn signal and parallel park autonomously. Autopilot also reduces front and side collision risk and helps keep the car on the road should the driver become distracted.

Thousands of Autopilot-equipped Tesla vehicles are gathering over one million miles of driving data per day. Tesla Motors can then analyze this data and feed it back to the fleet to continually improve our customers’ driving experiences. Autopilot is so advanced and unique that test drive requests from prospective customers have increased significantly since its introduction. To manage this volume of requests efficiently, consumers can now schedule their own test drives online, representing another industry-first by Tesla

Tesla Energy Production Begins at the Gigafactory

They began production of Tesla Energy products in Q3 at our Fremont factory, with a long-term plan to shift production to the Gigafactory. Faced with growing demand for Powerpacks and Powerwalls, they have accelerated their plans to expand manufacturing capacity. In early Q4, they relocated production from Fremont to an automated assembly line at the Gigafactory.
This positions them for strong growth in 2016, but the Gigafactory pull-ahead will push some Tesla Energy Q4 production and deliveries into Q1.

They have also accelerated plans to begin cell production for Tesla Energy products at the Gigafactory by the end of 2016. This is several quarters ahead of our initial plan.

In Q4, they plan to build 15,000 to 17,000 vehicles, and deliver 17,000 to 19,000 vehicles, which will result in 50,000 to 52,000 total deliveries for the year

They remain highly confident of average production and deliveries of 1,600 to 1,800 vehicles per week for Model S and Model X combined during 2016. This would be 60-80% more cars in 2016 over 2015.

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