Barring large-scale changes in the automotive industry, Tesla Motors says it's on track to ship more than 100,000 of its electric cars by the end of 2015 and has positioned itself to exceed 35,000 deliveries of the Model S before 2014 is over.
Despite announcing during its latest earnings report that it was operating at a loss of approximately $30.5 million over the last quarter, Tesla Motors' shares rose several cents after the electronic vehicle manufacturer indicated that demand for its cars was strong enough for the company to ship 100,000 cars annually.
Without setbacks from "macroeconomic shock," the EV manufacturer said it would hit that 100,000 mark by the end of 2015.
Tesla measures demand for its cars by the volume of nonrefundable deposits that are put on their cars, explained the EV maker in its earnings report. And according to Tesla, demand for its cars remained strong.
"Model S orders, and thus demand, continue to grow even in our most established markets," stated Tesla in a written statement. "In both North America and Europe, Q2 Model S orders increased sequentially at a much faster rate than for the rest of the automotive industry. Accordingly, we believe these markets remain under-penetrated."
While Tesla has been operating at a loss, it has been allocating roughly half of its gross profits to research and development.
Along with rolling out more than 150 charging locations for EVs and enhancing their performance, Tesla has also streamlined its repair process to strengthen its brand loyalty among customers. Tesla Motors CEO Elon Musk said his company has taken the approach of a Formula One pit crew so that they can repair cars before consumers even miss them.
"I think we had some quality control issues in the beginning, in the early days of the car, but the vast majority have been addressed," said Musk. "We're getting better at diagnosing what is wrong."
The construction of its battery production facility has also contributed to Tesla's operating loss, though the EV company counts it among the growing pains necessary to realize its potential. Reno, Nev., has been tentatively selected for the site of the battery plant, but the company hasn't ruled out other locations.
Wherever the battery plant lands, the company has a intriguing vision of the facility.
"Processed ore from mines will enter by railcar on one side and finished battery packs will exit on the other," stated Tesla.
