Tesla (NASDAQ:TSLA)’s Capacity Extension Plans For 2015


The investors of Tesla Motors (NASDAQ:TSLA) were disappointed with the company’s fourth quarter result of the fiscal year. There was an 8% dip in the aftermarket trading and the company displayed its ideas of expanding its production capacity in order to overcome production restrictions. Although the company’s earnings were below expectations yet the CEO of Tesla (NASDAQ:TSLA), Elon Musk said that the company is financially better than it looks.

He also said that there are chances that the company’s market capitalization, in a few years time, would match the market cap of Apple Inc (NASDAQ:AAPL). The company’s earnings report indicates that the automobile company was on track with its deliveries of the SUV Model X during fiscal 2015’s third quarter. Prior to the launch, Tesla Motors (NASDAQ:TSLA) wishes to implement automated machining as well as casting operations at its Lathrop branch which is located in California.

This will enable the company to implement number of aluminium components on its Models X and S. Moreover, the automobile company is also planning to expand its new drive unity by expanding its production line. The P85D which was recently revealed, became an instant hit among the customers; and according to Tesla (NASDAQ:TSLA), the company received overwhelming response for the product.

The automobile company could not cope with the orders for P85D and failed to deliver the surgical demand due to production restrictions and inefficiencies. Tesla Motors (NASDAQ:TSLA) is also considering an establishment of a new paint shop which the company will build by keeping the latest standards of high volume in mind. The standards for the new paint shop by the automobile manufacturer will exceed the standards of most of the other paint shops around the world.

The company ensured that there are no compromises made as far as the labor efficiency of the shop is concerned; along with that, the impact of the environment as well as the paint quality and the energy efficiency will also be better than the other paint shops.

The company’s investment in the paint shop will enable it to expand its production capacity, and by the end of this year, Tesla Motors (NASDAQ:TSLA) will be able to produce 2,000 cars per week. A Gigafactory worth $5 billion is another one of Tesla Motors (NASDAQ:TSLA) major investments. The Gigafactory is under construction at Nevada. According to the automobile company, the construction of its Gigafactory is on track and by the year 2016 it will be able to successfully produce packs of lithium batteries.

All the latest ventures that the automobile company has taken up shows that there is a lot of potential of growth for Tesla (NASDAQ:TSLA) in the upcoming years and the company is moving in the right direction of recovering from whatever loss it faced by failing to fulfil the demands of the customer’s orders.

There will be no looking back for the company once all of its deliveries are made, and the production restrictions are overcome by Tesla Motors (NASDAQ:TSLA). The company’s CEO is positive about the future of Tesla Motors (NASDAQ:TSLA) due to the company’s various projects and the growth potential they possess.


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