Musk has said Tesla is working to automate its assembly plant further in an effort to increase output for the Model 3. He said at the shareholder meeting that the company was beginning to think about additional assembly plants.
“There is no room at Fremont,” he said. “We are bursting at the seams.”
Tesla has had discussions with Chinese officials about opening a plant near Shanghai. China accounted for about 15 percent of Tesla’s revenue in 2016.
To prepare for the addition of the Model 3 to its lineup, Tesla built a $5 billion factory in Nevada to produce batteries for the company’s electric cars. Tesla has also bolstered its coffers. Earlier this year, it raised $1 billion through offerings of stock and debt. A Chinese Internet giant, Tencent Holdings, acquired a 5 percent stake in the company.
The company needs the extra capital because it continues to post losses in most quarters. In the first quarter this year, Tesla lost $397 million, compared with a loss of $282 million in the same period a year earlier. The company’s revenue more than doubled, however, to $2.7 billion.
Investor optimism about the Model 3 has pushed Tesla shares up about 67 percent this year. On Friday, shares closed at $361.61 but were down Monday by nearly 2.5 percent to close at $352.62. The company has a market value of $59 billion, about $7 billion more than General Motors and $15 billion more than Ford Motor.
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