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Tesla raises Model 3 Q2 production target to 6000 units/week

20 April 2018

The Tesla Model 3 is Musk's latest creation to hit the road.

"We see the next three months as the most critical time in Tesla's history since the Model S launch six years ago", analyst Adam Jonas said in a note to clients Wednesday.

According to Musk, Tesla needs to make 6,000 Model 3 per week by the end of June - an increase of the company's previous target of 5,000 per week.

How exactly is Tesla going to (at most) double production over the current rate in a month's time?

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In fact, the shutdown may be being used to reduce automation on the Model 3 line using more human production and fewer robots or conveyor belts, as Tesla CEO Elon Musk alluded to in a Tweet on Sunday. The stock price has dropped about 8 percent since January as many investors grow increasingly skeptical that CEO Elon Musk will be able to back up his bold promises for the electric vehicle company.

CBS This Morning took a tour of the esteemed entrepreneur's office in Fremont, where it was revealed that Musk had been resting on a couch during his tireless nights exploring solutions to the Telsa Model 3, which has since had its entire production paused. The lengthy e-mail discusses Tesla's (NASDAQ:TSLA) progress in ramping up the critical Model 3 production numbers, manufacturing precision/tolerances, and finally how the company will finally become profitable.

"(The) Model 3 is critical to Tesla's growth", said Tim Bajarin, president of tech consultancy Creative Strategies.

'When things get really intense, I don't have time to go home to shower and change, so I just sleep here, ' he told Gayle as he showed her around the Silicon Valley factory.

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The electric-car maker will try to build 6,000 of the sedans a week by the end of June, Musk wrote in an email Tuesday first obtained by the blog Electrek.

Tesla will add another shift to general assembly, body, and paint, and will be adding 400 workers per week "for several weeks" to accommodate this, Musk reportedly said. And while the company's profitability for 2018 will largely depend on which scenario eventually pans out, Model 3 has now firmly joined its competitors in the global EV market as the auto to beat. The company had about 37,000 employees by the end of 2017. This means a lot of middle-managers adding cost but not doing anything obviously useful.

Thanks for being such a kickass team and accomplishing miracles every day.

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Tesla raises Model 3 Q2 production target to 6000 units/week