The bizarre saga of Elon Musk’s aspirations to take Tesla private don’t seem to be affecting the ramp up of Tesla Model 3 production, which a new analyst note says is going better than expected. The note, from a firm called Evercore, claims Tesla is on track to hit roughly 6,000 Model 3s per week and that 7,000-8,000 cars per week is also “within reach,”
Evercore didn’t immediately respond to request for comment from Inverse, but news of its findings was first reported by Reuters. According to that report, Evercore is increasing its projections for the second half of the year by up to 7 percent.
“Tesla seems well on the way to achieving a steady weekly production rate of 5 to 6k units per week,” the note reads, per Reuters. “In addition, the capex required and constraints that need to be overcome to reach 7 to 8k units per week seem well within reach.”
Capex is shorthand for capital expenditures, which describes all the money that a company has to spend in order to maintain its fixed assets like factories. In other words, it sounds like Tesla is making progress toward its goal of getting its burn rate under control enough to keep expanding its operations while pursuing a path to profitability.
This is welcome good news for Tesla and Elon Musk. Last week, Musk threw the world for the loop by announcing on Twitter that he planned to take the company private, in a move that reportedly surprised members of his own board.
If the Tesla Model 3 ramp up continues to surpass expectations, Tesla’s aggrieved board members will likely have an easier time putting up with similar tweets in the future.