Tesla climbs after telling employees it’s planning to boost vehicle production

Benjamin Zhang/Business Insider
  • Tesla expects to increase production of its electric cars at its Fremont, California auto plant, according to an internal email.
  • The decision comes after the company beat Wall Street delivery estimates in the second quarter, hitting a new record.
  • Production may reach 500,000 vehicles globally in 2019 if its new factory in China can reach “volume production.”
  • Watch Tesla trade live here.

Tesla stock rose as much as 1.6% in early trading Tuesday after an internal email obtained by Bloomberg said the company is “making preparations” to increase production of its electric cars.

The email follows a second-quarter deliveries beat and new record for Tesla’s single auto assembly plant in Fremont, California. The company delivered 95,200 vehicles in the second quarter, with their entry-level Model 3 sedan making up for 77,550 deliveries.

The company’s automotive president Jerome Guillen told employees in the Tuesday email “while we can’t be too specific in this email, I know you will be delighted by the upcoming developments.” He added “quality is also reaching record highs.”

The company expects to deliver between 360,000 and 400,000 cars in 2019, and recently said “vehicle production will be significantly higher than deliveries” this year. Tesla announced in a recent shareholders letter that its new factory near Shanghai could boost production numbers to 500,000 vehicles in 2019. Guillen’s email said many parts of the new factory’s assembly line are already operational.

“The Stamping, Body, Paint and General Assembly lines in China are well underway and hitting records in both line design and fabrication,” Tesla’s memo said.

Tesla closed at $$184.54, down 31% year-to-date.

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