Tesla Inc (TSLA.O) shares rose 3.5 percent on Wednesday morning after Chief Executive Elon Musk said the auto maker was now churning out 500 of its Model 3 sedans a day and should achieve its 5,000 per week target by the end of June. "We expect to get into volume production by Q1 of next year".
Gigafactories will produce battery packs and cars on site, according to Musk. Musk said manufacturing will be Tesla's greatest strength long-term and predicted the company would be profitable in Q3 and Q4.
Upcoming and existing rivals such as the Fiat 500e, Mini Electric, Renault Zoe and Honda Urban EV all occupy the B-segment EV market, although the Nissan Leaf, BMW i3 and upcoming VW ID would be more direct competitors to a C-segment Tesla, given their £27,000-plus prices.
"It's very hard to become a mass-manufacturing auto company", Musk, 46, said Tuesday after shareholders voted down a measure that would have required an independent director replace him as chairman.
Investor Antonio Gracias, Tesla's lead independent director; James Murdoch, the CEO of Twenty-First Century Fox Inc; and Elon Musk's brother Kimbal have all been re-elected as Tesla directors.
Meanwhile, Musk said that Tesla's next mass-market vehicle, the Model Y, won't be fully revealed until next spring, with production set to follow in the first half of 2020.
Tesla's board of directors did not support the proposal and said Musk's role as the company's chairman has been essential to Tesla's success so far and will allow the company to quickly adapt to new challenges.
The last several months, he said, were the most "hellish" in his life. Musk also expressed his pride for Tesla workers. Tesla has not hit the intended goal of 5,000 cars per week. "One of the biggest mistakes we made was trying to automate things that are super easy for a human to do, and super hard for a robot".
The report says that 8 percent of depositors had configured a Tesla for production in April, which deems the purchase nonrefundable.
The proposal, which was defeated in a vote at Tesla's annual meeting of stockholders on Tueday, represented the strongest challenge yet to Musk's grip on the Silicon Valley vehicle company.