Tesla ramps up production in Shanghai to offset Chinese import tariffs

Elon Musk bowed to demands from America’s financial markets watchdog to give up his position as chairman of Tesla

One tweeted to Musk last month: "There are 42 Tesla's sitting at the Union Pacific Railroad in SLC".

Tesla Motors accelerated production of its pivotal Model 3 sedan during the summer just as CEO Elon Musk promised, vindicating the electric auto maker's leader amid a backdrop of baffling behavior that jeopardized his job.

The company delivered 83,500 vehicles during the third quarter, a strong performance that should calm investor fears about logistical problems and a looming cash crunch. The company said it delivered 14,470 Model S and 13,190 Model X; as with the Model 3, the company delivered a few more of the expensive luxury models than it built.

In addition, Tesla continues to lack access to cash incentives available to locally produced electric vehicles in China that are typically around 15% of MSRP or more.

The California-based electric carmaker, emerging from several months of turmoil around its Chief Executive Elon Musk, confirmed numbers leaked to an industry news site on Monday that showed it produced roughly 80,000 cars in the third quarter. Musk and Tesla will each pay $20 million to resolve the case.

However, Musk will remain as CEO of the company under the agreement made by the SEC.

Musk said in an email to employees on Saturday the company was "very close to achieving profitability" but for that it has to stabilize a brutal ramp-up in output whose targets it has consistently struggled to meet.

Tesla's third-quarter production report was positive in some ways, but the details were a little hazy.

Production was a bit below that number: Tesla said it built about 53,000 Model 3s. "If we go all out tomorrow, we will achieve an epic victory beyond all expectations". We also want to thank all of our customers who volunteered to help us with deliveries, and our new customers who are showing their faith in Tesla by purchasing our products in such large numbers.

The numbers initially lifted Tesla shares but they fell later as investors anxious about the company's warning that a 40-percent tariff on Chinese imports of its cars was blocking sales in the world's biggest electric vehicle market. I've been told I was getting delivery the 8th, then the 15th, then the 20th, then the 22nd, and now my delivery has been delayed indefinite.

On Tuesday morning, Tesla released its production and delivery results for Q3 2018. We're making rapid progress.

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