Tesla released the fourth quarter earnings report and updates for 2017, providing guidance for the current year’s expectations. Tesla achieved numerous milestones in 2017. It rolled out the first batch of Model 3 vehicles, reached record production and delivery levels of the Model S and Model X, unveiled the Semi and next generation Roadster, and installed the world’s largest battery in Australia.
In Q4 only, Tesla managed to deliver 28,425 Model S and Model X vehicles and 1,542 Model 3 vehicles, totalling 29,967 vehicles. Combined Model S and Model X deliveries in Q4 grew 10% globally compared to Q3, and they grew 28% compared to Q4 2016. There was an even bigger increase in solar and Powerwall sales, resulting in 143 MWh of energy storage products, growing 45% from Q4 2016.
Tesla also opened 12 new stores and service locations, resulting in a total of 330 global locations. However, the Supercharger network had the most significant growth yet, as the company opened 338 new locations, totalling 1,128 globally.
Even though Tesla did not manage to meet all of the planned targets in 2017, it made ambitious plans for a transformative 2018. Tesla plans to continue operational scaling and start generating sustainable positive quarterly EBIT in 2018. It plans to scale production of the Model 3 and energy storage products, while keeping operating expenses under control.
Tesla’s target for Model 3 in 2018 will remain at 2,500 by the end of Q1 and 5,000 by the end of Q2. After reaching a stable production of 5,000 Model 3 cars per week, Tesla plans to start adding enough capacity to get to a 10,000 unit weekly rate.
The company expects to deliver a total of 100,000 Model S and Model X cars. The growth of the sales network in 2018 should lead to demand for these cars surpassing production.
Energy storage products are expected to at least triple in 2018. This will be caused by commercial solar projects and more profitable energy storage business. Additionally, Superchargers will start generating revenue in 2018 with pay per use charging primarily by Model 3 customers.
Tesla expects another successful year and a new chapter in its journey. The company believes that demand for EVs and energy storage products will increase by hundreds of thousands in 2018. It expects to achieve cost parity by producing a premium EV like Model 3, at the cost of an ICE vehicle.
Tesla has already started the year with several ave-inspiring milestones. Earlier this month, it pledged to make the first virtual power plant in South Australia, by giving solar panels and batteries to more than 50,000 households. Nonetheless, Tesla’s most noble milestone was this week’s launch of the Falcon Heavy, sending Elon Musk’s original Roadster on a trip to deep space.