Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk projects to deliver over 100,000 cars per year by the end of 2015, of those, half will be existing Model S sedan while the other half would be the Model X, expected to be shipped early next year. Reflecting the same idea, Musk in a letter sent to the shareholders on Thursday, detailing on the company’s results and on a new battery plant, said:
“Processed ore from mines will enter by railcar on one side and finished battery packs will exit on the other.”
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Battery plant to play a key role
Musk, who is known for being different, is the only car executive talking of ore in this modern era. Henry Ford’s raw materials have long been abandoned by car manufacturers. Tesla is talking directly with the ore suppliers to cut on costs, according to Businessweek. Musk believes that outsourcing does not lower the cost, and during a conference call with analysts said, “It is almost always the case that when we in-sourced something it got cheaper.”
The much-awaited plant will be developed in cooperation with Panasonic, where Tesla will take care of the construction and Panasonic will focus on machinery and supply of lithium-ion battery cells. The car maker also informed that ground work has already been started in Nevada.
As per the CEOs vision, factories like this would play a key role in developing an electric car for the masses. Tesla and Panasonic will use their expertise to lower the cost and up the supply of batteries required.
Musk making Tesla unique
To make Tesla different from other automakers, it has hired to team of Formula One mechanics to train Tesla service people to repair vehicles in quick time. During the call with analysts, Musk said, “We want to fix the car and give it back to you without you even knowing it was gone.”
The 100,000 units would surely keep investors and shareholders upbeat. The figure reflects that the company to not expect any significant rise in Model S demand, but have robust pre-orders for the Model X. Even market watchers have been predicting a slowdown in the demand for the Model S, which has been in the market for two-years. However, expansion in China and Europe has been fueling the sales for Tesla.