Production capacity has been reached.
Tesla has added yet another impressive achievement to its growing list of them. According to sources familiar with the matter who tipped off Electrek, the all-electric automaker has already reached production capacity for the second quarter despite the fact that there are still two months remaining in the business period. Until now, it was expected both the heavily updated Tesla Model S and Model X would experience production bottlenecks following a previous delay.
That's still apparently happening. But the report indicates both the Model 3 and Model Y are sold out through July 1, 2021, even though both continue to experience price increases.
Production for both remains at a feverish pace in order to make delivery times, and the surging demand will only add to the pressure. With Q2 already sold out, that means a backlog is already underway for Q3. Last quarter, Tesla reported it delivered more than 184,000 vehicles, beating Wall Street expectations that pegged the figure closer to 178,000.
To compare, Tesla delivered 180,570 vehicles in the final quarter of last year; it continues to pick up the pace quarter by quarter. CEO Elon Musk recently said he predicts the Model Y will become the best-selling car in the world next year. He may prove to be right.
The smaller of Tesla's two SUVs is now built at the Fremont and Shanghai factories and, upon completion, at the currently under construction Gigafactories outside of Austin, Texas and Berlin, Germany. The Model 3 will be manufactured at those four locations as well. Earlier this week, Tesla changed its referral program to less favorable terms. It made good use of it for years to help increase sales, but the demand surge indicates the program is no longer vital. As usual, Tesla simply made these changes without explanation or prior announcement.
Rival automakers like General Motors and Volkswagen continue to closely monitor Tesla because they've both staked their futures on zero-emissions electrified vehicles. Given Tesla's growing popularity and greater consumer confidence in EVs themselves, both companies can rest assured they made the right decision.