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Q3 deliveries totaled 83, vehicles: There remain significant opportunities to grow the addressable market for Model 3 by introducing leasing, standard battery and other lower-priced variants of the car, and by starting international deliveries.

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Demand for Model S and X remains high. In Q3, we were able to significantly increase Model S and X deliveries notwithstanding the headwinds we have been facing from the ongoing trade tensions between the US and China.

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This makes for a challenging competitive environment, given that China is by far the largest market for electric vehicles. To address this issue, we are accelerating construction of our Shanghai factory, which we expect to be a capital efficient and rapid buildout, using many lessons learned from the Model 3 ramp in North America. With production stabilized, delivery and outbound vehicle logistics were our main challenges during Q3. We made many improvements to these processes throughout the quarter, and plan to make further improvements in Q4 so that we can scale successfully.

As part of this effort, we plan to continue to expand direct deliveries to customers at their home or office, a service we launched in Q3 to improve customer convenience. Our overall target of , Model S and X deliveries in remains unchanged. Our net income and cash flow results will be announced along with the rest of our financial performance when we announce Q3 earnings.

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We want to thank the entire Tesla team for executing so well during this challenging ramp up in deliveries. But where, we wonder, is Broussard?


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We find him sulking outside. It seems an organizer had told him he was too old to participate. This turns out not to be true, however, and he is quickly reinstated, just in time to hear the names of those chosen for maxi-dates announced over a loudspeaker.


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Sadly, his is not among them. But Broussard is not deterred. He feels confident that one day he will be matched up with the proper speed-dating event.

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