Reinforcing some things we already knew
Elon Musk and Deepak Ahuja, CEO and CFO at Tesla respectively, have told investors the company will be turning a profit during the second half of 2018.
In the quarterly letter and call to investors, the two Tesla high-ups reinforced their belief the company won't need additional external funding this year, thanks in part to a comprehensive restructure of contractors.
At the moment, there's US$2.7 billion ($3.6b) in cash in the bank, down from US$3.4 billion ($4.5b) at the start of 2018.
The main focus will be ramping up Model 3 production through the second quarter of this year. The letter highlighted the fact production of the 'affordable' electric car hit 2270 per week in April, making for three straight weeks with more than 2000 cars rolling off the production line.
"As with all manufacturing, Model 3 production can only go as fast as the slowest part of the entire supply chain and production process," the letter said, referencing a battery module line previously blamed for slowing the process down.
As previously reported, there will be some 'days of downtime' during Q2 as small niggles are ironed out of the production process.
“We’ve spoken at great length about the “machine that builds the machine” and why it is so important to Tesla’s long-term success," the investor letter said.
"Fundamentally, we believe that thinking about a factory in the same way that people think about the product itself creates the potential for a step change in manufacturing that will create enormous benefits for quality, cost, efficiency and employee safety."
"It is human nature to take the best of what the automotive industry currently has to offer and assume that is the best that can be done. But we believe in first principles thinking. In the end, this is all about having factories that are producing the world’s highest quality cars as quickly and as cost-effectively as possible, and with as close to zero injuries as we can possibly get."
"Our automation strategy is key to this and we are as committed to it as ever."
Once the Model 3 is rolling off the production line at a rate of 5000 per month, Tesla will add a base model with a smaller battery, along with all-wheel drive variants.