Tesla Meets Model 3 Production Goal, Says Musk

BusinessTesla Meets Model 3 Production Goal, Says Musk

Tesla Meets Model 3 Production Goal, Says Musk

Tesla managed to meet its June production goal after putting out 5,000 Model 3 cars by early Sunday.

Total production numbers were 7,000 vehicles, but 5,000 of them were Model 3s.

Self-Imposed Deadline

Tesla managed to meet and even exceed its own deadline by producing 7,000 vehicles, including 5,000 of its Model 3 electric cars. It met the goal during the last week of the company’s second quarter, said Elon Musk, Tesla CEO.

The initial report of the accomplishment was made by Reuters, which went on to report that Tesla’s shares continued falling regardless of meeting the deadline. The Model 3s were manufactured and their final quality checks were completed on Sunday morning at the factory in Fremont, California.

It is not yet clear whether or not Tesla will be able to maintain the level of production it kept up in order to achieve its production goal. That said, it suggests that the company is capable of reaching a mass production rate for its Model 3 sedans.

Losing Money

Tesla has been losing money, burning its way through even more money in the effort to produce the Model 3 in the first place. It has faced a rash of delays in the car’s production, causing potential harm to the company’s reputation and capability to mass-produce in a profitable way. The delays have threatened Tesla’s position as the first to market automaker for a mid-priced electric vehicle with long-range battery capabilities.

The company’s rivals have been boosting in strategy and numbers. The longer it takes for Tesla to find its groove, the greater the risk that competitors will do things faster and better. The company also had a major layoff on June.

Model 3 Challenge

The Model 3’s production has faced one issue after the next. The main delays involved issues such as problems with its battery manufacturing, relying too heavily on assembly line automation, and other struggles with production bottlenecks.

As its self imposed deadline approached, Musk pressed harder, having built an additional assembly line in a large exterior tent near the main factory. This demonstrated the company’s willingness and dedication to meeting its target. Musk went so far as to tweet images of rows of robots and auto parts with the deadline only days away.

This tactic is commonplace for the company, which practices “burst builds.” These are temporary periods in which Tesla produces as many vehicles as possible. That practice helps it to estimate how many vehicles it will be able to mass-produce over longer time period.