Published: Tue, July 03, 2018
Finance | By Gustavo Carr

Did Tesla Hit Its Model 3 Production Goal Last Month?

Did Tesla Hit Its Model 3 Production Goal Last Month?

Tesla Inc almost produced 5,000 Model 3 electric sedans in the last week of its second quarter, with the final auto rolling off the assembly line on Sunday morning, several hours after the midnight goal set by Chief Executive Elon Musk, two workers at the factory told Reuters.

The accounts vary slightly: Elon Musk reportedly sent an internal email saying that Tesla hit the target of producing 5,000 Model 3 cars in a week.

Musk has said production of the long-awaited base Model 3, which is supposed to cost $35,000 won't start for another three to four months.

"We either found a way or, by will and inventiveness, created entirely new solutions that were thought impossible", he added.

While UBS analyst Colin Langan said there was some relief the company hit the Model 3 production target, he noted that second-quarter vehicle deliveries of 40,740 missed his expectation for 51,000 and the consensus estimate of 49,000.

Tesla released its eagerly-anticipated second quarter report on vehicle production and deliveries today, as it passed a crucial production milestone for the Model 3 sedan. Tesla stated GA4 was responsible for 20% of the Model 3s in the last week suggesting a rate of ~1k/week for the tent and ~4k/week for GA3.

"We are actually breaking them to see what the maximum limit is", Mr. Mwangi said.

As of the end of Q2 2018, Tesla had 11,166 Model 3 vehicles and 3,892 Model S and Model X in transit to customers, with deliveries expected to be scheduled sometime early in the third quarter.

The 5,000th auto of the week rolled off the production line on Sunday morning, according to Reuters.

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"I think we just became a real auto company", he wrote.

Tesla also reaffirmed a positive cash flow and profit forecast for the year. The electric automaker also faced scrutiny for the large tents it had set up near its Fremont plant that housed some of the Model 3's assembly line components. The electric auto company sees the vehicle as a way to further scale its business, by stepping beyond the luxury market.

Tesla made true on its promise of building 5,000 Model 3 sedans in a week, it said Sunday. It has only reported two profitable quarters in eight years as a public company and is deep in debt.

The filing comes after Musk tweeted late Sunday that Tesla's team produced 7,000 cars in seven days.

And the progress has not been limited to the Model 3.

Tesla has received around 450,000 Model 3 reservations but the cheapest version of the vehicle, priced at $35,000, is not yet available to customers.

The Model 3 push has been tough for the company.

Tesla doesn't disclose vehicle sales by region, but it's expected to hit 200,000 cumulative sales in the United States any day.

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