Electric Vehicles

Tesla to Produce Over 100,000 New Model S and Model X Per Year

Tesla to Produce Over 100,000 New Model S and Model X Per Year

Tesla plans to produce over 100,000 new Model S and Model X per year, starting this year. The company will be bringing back the flagship vehicle programs to life after they enjoyed explosive delivery results of more than 184,000 electric cars delivered in China alone.

Unlike the Model 3 and Model Y, both Model S and Model X are pricey and comes packed with features as well as the automaker’s powerful 100kW/h battery pack. The sedan and SUV are built on the same platform.

The company aims to resume producing more than 100,000 new Model S and Model X vehicles per year as they aim to further convert gas-powered car owners into EV owners. Tesla was able to achieve annualized rate in late 2018 but shifted to Model 3 and Model Y which is affordable and customer-friendly.

Tesla Model X to Enter Production

Now with the recent price hike on Model 3 and Model Y, the company is looking to breathe some life back into its flagship vehicle programs.

The production of Model S and Model X has been delayed as Tesla’s chief executive officer, Elon Musk, confirmed it took longer than expected to ensure the new battery packs are safe. Elon is now saying that Tesla is expected to start delivering Model S as soon as next month and Model X in the next quarter.

Elon Musk said that Tesla aims to produce over 2,000 S/X per week with the possibility of going up to 2,400 or 2,500 units. This will be dependent on the global supply chain issues as there are a lot of factors that are outside of their control. However, he believes the supply chain issues will get solved soon.

Tesla Model S to Enter Production

Based on the weekly production rate, Elon Musk is talking about producing an annual rate of 100,000 units for Model S and Model X. This will be a major capacity for the high-end Tesla models that starts at $80,000. Both Model S and Model X will become the best selling in the luxury category if there are strong demand and Tesla appears to think so based on their order backlog.

Tesla plans to start delivering new Model S between August to September and Model X between October-November in the United States. The Model S and Model X will be the new version and the company aims to produce them in high volume, thus bringing back the flagship vehicle program to life.

Early this April, President Biden proposed a $2.25 trillion infrastructure bill, out of overall, $174 billion will be spent on EV incentive programs to electrify the infrastructure. As of current, it is still going through changes in Congress. The new federal EV tax credit might lift the cap on the 200,000 limits imposed on Tesla and General Motors.

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