Tesla Motors Inc (NASDAQ:TSLA) recently rolled out its first SUV, the Model X, and it was reported shortly after that the company was now focusing on the affordable Model 3, which will be unveiled in 2016 and produced in 2017. But in a recent interview, Tesla’s CEO Elon Musk, said he expected Model S and X demand to top 100,000 units combined.
Musk thinks the demand for the affordable Model 3, which is said to be coming with a $35,000 price tag, is going to be very good. The CEO added that the demand for its other vehicles, the Model S and X is pretty good and that over time the two could reach the hundred thousand units per year.
Model X and Model S
The Model X, which started being rolled out of the factory on September, was pre-ordered by 30,000 customers, according to user groups. The first six Founders Series models were delivered at the end of September. The rest of the customers will have to wait a little longer as the company said that most of the pre-orders would be finished by next year. The Tesla Model S on the other hand, has been out since 2012 and has been a hot seller in places like California and Norway. The United States is actually the leading market with over 50,000 units sold by early July 2015, followed by Norway with 8,697 units.
Elon’s prediction means that sales will continue growing over the next few years. The electric car maker hopes to get bigger in various markets, such as China, where 4,646 Model S’s had been sold through June 2015. If it all goes well there, Tesla could make that mark.
The CEO did not say when in the interview, but his words probably mean years after the Model 3 is released. Musk also added that with the Model 3, he is really confident that they can do another 300,000 or 400,000 cars per year.
Production and Factories
Those are big numbers for the company, we’ll have to wait and see with all the competition looking to gain ground on Tesla with their own electric cars. The Palo Alto company is not just talking, they are building a lithium-ion battery factory at the Tahoe Reno Industrial Center in Storey County, Nevada. The Gigafactory 1, which will be operational in 2016 or 2017, will lower the production cost for the batteries and powerwall packs by around 30 percent. The place will supply 500,000 Tesla cars per year.
Tesla has called it the Gigafactory 1 because they plan on building more factories in the future. Musk estimated that the Gigafactory 1 is not enough to supply demand and rumors say that the electric car maker could build another one in Japan or India. The island nation in the Pacific Ocean could be the top candidate because it is the second-biggest source of Tesla components after North America. India was added as a candidate a few days ago after a person on social media asked the CEO about a factory in the country and he replied that given the high local demand, a Gigafactory in India would probably make sense in the long term.