Tesla has published its first quarter 2016 financial results, showing a 22 per cent increase in revenues. The company has also announced plans to ramp up production, promising to build a combined 500,000 vehicles over the next two years.
This year, the company plans to deliver 80,000 to 90,000 Model S and Model X vehicles. The recently-announced Model 3, dubbed the 'affordable' Tesla due to its comparatively modest £30,000 price, is due to start shipping towards the beginning of 2017. High pre-order demand for the new model has prompted the promised production increase through 2018.
Tesla CEO Elon Musk writes that "increasing production five fold over the next two years will be challenging and will likely require some additional capital, but this is our goal and we will be working hard to achieve it." The company is also set to begin battery production at its new Gigafactory by the end of this year.
Musk has previously noted that "we will need to build a factory in Europe to serve long-term regional demand as Fremont reaches max capacity," with a retiring French nuclear facility currently the front-runner for a European car building plant.
Currently, the company produces all its vehicles in the USA, and ships them to the rest of the world. This can cause supply bottlenecks. The report notes that: "Due to a large number of vehicles in transit to customers in Europe and Asia at end of quarter, Q2 deliveries are expected to be approximately 17,000 vehicles." However, it's aiming to produce 2,000 cars a week by the end of the second quarter of 2016, which it says will lay a foundation for a stronger third quarter and ongoing growth.
Despite plans for massive growth, the electric car maker is still operating at a net loss of $282 million (£194 million). However, this is less than predicted by market analysts and, in combination with Musk's announcement of increased production plans, led to an after-hours share price increase of around 4 per cent, roughly compensating for losses seen earlier in the day, in anticipating of poor financial results.