Published: Tue, July 03, 2018
Money | By Wilma Wheeler

Tesla finally manages to produce 5,000 Model 3 cars in a week

Tesla finally manages to produce 5,000 Model 3 cars in a week

Official production and delivery numbers released by the company this afternoon showed that Tesla produced 5,031 Model 3 cars in the last seven days of its second quarter, with 11,116 cars in transit to customers, to be delivered early next quarter.

In an internal email announcing layoffs last month, Elon Musk wrote that Tesla needs to become "sustainably profitable" in order to achieve its goal of accelerating the transition to clean energy technologies.

"We did it! We either found a way or, by will and inventiveness, created entirely new solutions that were thought impossible". "Not only did we factory gate over 5,000 Model 3's, but we also achieved the S & X production target for a combined 7,000 vehicle week!"

Tesla had a hard time ramping up production of the Model 3, its long-awaited entry-level model. The company reached their production milestone at approximately 5:00 a.m. local time on July 1.

Wall Street was divided on whether Musk and Tesla could pull it off. "We believe in rapid evolution", Musk tells the Times in an interview-it took place at 3am Thursday, the only time the company said he'd be available. Tesla targeted production of 5,000 Model 3s per week by the end of Q2.

That's in line with the goal the company set for itself at the start of the year to produce 5,000 Model 3 vehicles per month by the end of June.

That puts companies such as Ford and Tesla at a disadvantage to European and Asian manufacturers. Augmented with GA4, the Model 3's newest assembly line set up in the massive sprung structure on the grounds of the Fremont factory, however, Tesla noted that it was able to hit its production target for the compact electric vehicle faster.

The company expects to increase production to 6,000 Model 3s per week by late next month. Sure enough, by the last week of the quarter, Tesla moved 5,031 of its most affordable vehicle off the line.

Despite originally touting the Model 3 as a $35,000 vehicle, Tesla has yet to begin building that basic version and instead is now building a higher-priced version as it tries to come out of "production hell". That was responsible for around 20-percent of the Model 3 produced in the final week.

The company produced just 2,425 in the fourth quarter.

Doug Field, Tesla's second most senior engineer at Tesla after CTO JB Straubel, has been on leave from the automaker since May, but we now learn that he will not be returning at Tesla.

Model 3 production tripled to 28,578 in the company's second quarter from the previous quarter, Tesla said. At the time, Tesla was producing 3,500 of the vehicles per week, he said.

Pricing starts at $35,000 for the auto, and about 450,000 have been pre-ordered by consumers.

June was turbulent for Tesla.

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