Tesla's survival looks more certain with Blankenship confirming production rate
The big question surrounding Tesla Motors is whether the company will survive or crash and burn. Writing an Inside Tesla post on the Tesla Motors blog, on Tuesday, George Blankenship, Vice President, Worldwide Sales and Ownership Experience made the first concrete statement that the company had reached a 20,000/year Model S production. According to Elon Musk this sales rate is double what's required for the company to reach cash-flow-break-even.
Blankenship's blog post covered a long list of updates, but their production rate is the key metric we've been looking at for several months. Production of the Model S began in June 2012, and the company increased the rate between them and the end of the year. The production rate increases fell behind the original expectations, and rather than produce 5,000 Model S's in 2012 the company produced a fewer number of cars. Tesla has not disclosed the actual production for 2012 at this time, but the key milestone is to reach the full production rate. Why? This dates back to statements made by Elon Musk several times in 2012.