Early in June, Elon Musk promised shareholders that Tesla would be churning out 5,000 Model 3 cars per week by the end of the month. This goal was audacious for the electric-car company, and Tesla hasn’t always hit its big production deadlines. But this time might be different.
Model 3 production numbers are likely to be revealed shortly after the quarter ends, probably around July 3, according to a research note from Goldman Sachs.
Tesla has faced a wave of skepticism from financial analysts as well as a number of unforeseen obstacles ranging from automation issues to sabotage ahead of this major deadline. Yet Musk has been nothing but confident, even emailing his employees that his doubters are “in for a rude awakening.” But there are still some signs Musk’s self-assurance isn’t unfounded.
Will Tesla Make 5,000 Model 3s this Month?
Panasonic — Tesla exclusive battery supplier — announced Thursday that the “sharp improvement in [Model 3] production” has led to battery cell shortages, possibly alluding to the fact that the EV manufacturer is cranking out cars faster than Panasonic can make batteries.
Following the internal sabotage of Tesla’s Fremont Factory, the company erected a tent-enclosed assembly line to temporarily replace damaged equipment.
Inverse previously reported that the company has also opened up pre-orders to everyone who put down a $1,000 reservation for the Model 3 and has lowered the prices on the car’s Performance and Dual-Motor All Wheel variants, two more strong signals that the company is confident it will meet Musk’s quota.
Musk touted the Model 3 as being an accessible fully electric vehicle, starting at $35,000 for a base model. This prompted a surge of roughly 400,000 reservations, a majority of which have not been finalized because of production delays.
Reaching the heralded goal of 5,000 Model 3s per week won’t only give Tesla a shot at one day becoming cash flow positive, but it will prove that a future of clean energy vehicles dominating the road is possible.
Stay tuned, these next few days will be pivotal for Tesla.