Tesla is poised to increase production at its California car plant and is back in hiring mode, according to an internal email sent days after the company wrapped up a record quarter of deliveries.
The electric-car maker is “making preparations” to raise output at its factory in Fremont, California, Jerome Guillen, Tesla’s automotive president, wrote Tuesday. “While we can’t be too specific in this email, I know you will be delighted with the upcoming developments.”
After several rounds of job cuts announced by CEO Elon Musk over the past year, Guillen also told employees that Tesla is hiring. “As we continue to ramp up production, please tell your friends and neighbors that we have lots of exciting new positions open, both in Fremont and at Giga,” he wrote, referring to the company’s battery factory near Reno, Nevada.
A copy of the email was seen by Bloomberg, and a Tesla spokeswoman didn’t immediately respond to a voicemail or email seeking comment.
The plan to boost production is a show of confidence by Tesla in the sustainability of demand for the Model 3, which paced the company’s record 95,200 deliveries in the second quarter. The sedan is helping Musk, 48, overcome flagging sales of the Model S, which went into production in 2012, and the Model X, which started output in 2015.
Musk this week tamped down speculation that “refreshed” versions of the Model S and X are coming soon, saying the vehicles will get “only a series of minor ongoing changes.” Tesla delivered a total of just 17,650 Model S sedans and Model X crossovers in the second quarter, down 21 percent from the year-earlier period.
Tesla’s shares had plunged 31 percent this year through Tuesday’s close. The rout has been fueled by disappointing first-quarter deliveries and concern that the cheaper Model 3 is cannibalizing sales from the higher-margin Model S and X, preventing the company from earnings profits.
But just as Musk has been adamant that demand isn’t a problem for Tesla, Guillen’s letter to employees is upbeat. He wrote that the company “hit new records in all production lines for output and efficiency” in the most recent quarter -- both at the California and Nevada plants -- and that “quality is also reaching record highs.”