Demand For Tesla Model 3 and Model Y Could Mean Several More Factories

Demand for Tesla vehicles could mean adding up to 20 new factories in the near-term future, Tesla CEO Elon Musk told shareholders on Tuesday.

The company may need to add at least three and up to “as many as 10 or 20” new factories beyond the current Fremont, Calif., plant to meet expected demand.

While the soon-to-be-launched Model 3 small car is expected to do well, the Model Y crossover should see even stronger sales, Musk said during the annual shareholders meeting at the Computer History Museum not far from its Palo Alto headquarters.

Currently in development, the Model Y will be arriving at Tesla stores in 2019, he said. But, it won’t be a simple transition; the Model Y will be built on a different chassis than the Model 3, Musk said.

Tesla shared the teaser image at the shareholder meeting.

Ordering a Model 3 this year will be easier than the Model X.

“It’ll be simple,” Musk said. “We offered too much with the Model X,” which he called a “Faberge egg of cars, that likely could not, and should not, be built again.”

The chief executive said that the company’s electric semi-truck is on track. A beta version will be revealed in September, which the company previously announced; but Musk did put out a teaser on it:

“Maybe there’s a little more than we’re saying here. Could be.”

He also promoted the company’s three-prong strategy for unique market identity – electric cars, solar panels, and battery storage.

“It’s a fully contained energy solution that could scale for the whole world,” he said. “There’s an island in American Samoa that is totally off the grid. And continents are really just very big islands. So you can do this with a continent.”

The annual shareholder meeting started with debate over whether Tesla board members should serve shorter terms. Representatives from institutional investors have been pushing for more accountability from the board.

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The automaker disagrees with that argument, and says that three-year terms help board members gain a broader perspective on the company’s future.

Shareholders ended up backing the board seat terms without making changes.

Musk told shareholders that he plans to announce two or three new members of the board “from a broad range of industries” in the coming months.

USA Today


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