Tesla Motors reveals 'potential' Gigafactory location in earnings report(Read article summary)
Tesla Motors has broken ground in Reno, Nev. for its $5 billion Gigafactory, according to their earnings report. But, Tesla Motors says it is a 'potential' location for the lithium-ion battery factory and the automaker is still looking at other possible sites.
Tesla Motors built 8,763 Model S electric cars and delivered 7,579 of them to customers during the second quarter, according to just-released second-quarter results.
It expects to build about 9,000 cars this quarter, and deliver 7,800, largely due to a two-week production shutdown for retooling at its factory in Fremont, California--which cost it about 2,000 cars, it said.
35,000 cars this year
But the company says it is still on track to deliver about 35,000 cars during calendar 2014, its original guidance for the year's sales and leasing.
The factory upgrades will allow Tesla to produce 1,000 cars a week or more once the line is running at full speed.
This article covers some of the highlights of the letter to shareholders released by the company, along with the subsequent analysts' conference call.
Model S and Model X by end of 2015
Tesla still expects to be delivering at a rate of more than 100,000 cars by the end of 2015, when capacity expansion has been completed and its Model X crossover has joined the Model S in full production.
The good news, said the shareholder letter, is that demand for the Model S continues to grow.
"Average global delivery wait times increased because our production growth was unable to keep pace with increased demand."
The total pool of Tesla vehicles on the road, moreover, has covered almost 400 million miles.
Moreover, the company has broken ground in Nevada on a "potential" site for its lithium-ion cell fabrication "gigafactory," which had been the subject of multiple rumors over the last few weeks.
The company said it "remain[s] on track with the site selection process," and that, "Consistent with our strategy to identify and break ground on multiple sites, we continue to evaluate other locations in Arizona, California, New Mexico, and Texas."
The company announced an agreement with cell partner Panasonic this morning to build the factory, which Tesla will operate. Panasonic will invest in production equipment for the factory, while Tesla will "prepare and provide" the building, utilities, and more.