Citizens of the world’s second largest economy, China, rejoice.
Tesla Motors (TSLA) plans to deliver its Model X vehicles to Chinese consumers at the end the end of June rather than in the first quarter of 2017, the vice president of Tesla, Robin Ren, told China Daily. The automaker allowed Chinese consumers to began ordering the car in February—ahead of any other foreign market.
According to Ren, Tesla decided to ramp up production in part due to the flood of orders for Tesla’s main street vehicle, the Model 3.
“Stimulated by the impressive number of orders of Model 3, we are now making a new capacity plan,” Ren told China Daily.
Tesla received nearly 400,000 orders for its Model 3, which debuted late March. Many of those orders come from Chinese consumers, according to Ren.
Teslas accelerated delivery plan is a also a sign of China’s importance in Tesla’s growth plan. The carmaker entered the Chinese market in 2014 with its Model S, but realized entering the space as a foreign carmaker would be very difficult when it delivered just 3,500 cars that year. Since then, Tesla’s strategy has gotten far more aggressive.
To break into the country, Tesla hired hundreds of staff, opened stores and service centers. To counteract the perception that electric vehicles are inconvenient to charge, Tesla is also installing charging stations in China at a faster pace. The company is also plans to build a Chinese factory by the end of 2018, although the details are still uncertain, China Daily reported.
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The decision to speed up delivery of the Model X is also surprising, considering the car’s history of production woes. Shares of Tesla fell following the carmakers first quarter earnings report in April, when the company reportedly slowed down production of the Model X due to “hubris in adding far too much new technology to the Model X in version 1, insufficient supplier capability validation, and Tesla not having broad enough internal capability to manufacture the parts in-house.”
Coins2Day has reached out to Tesla for comment, and will update if they respond.
