Tesla Model 3 production reaches 5,000 cars in last week of June


Tesla met its production goals for the Model 3 last week, producing a total of 5,000 vehicles.

By building more than 5,000 of the sedans in the last week of the second quarter, Tesla "just became a real vehicle company", the chief executive officer said in an internal email Sunday obtained by Bloomberg News.

CEO Elon Musk celebrated the milestone in an email to employees, praising the "mind-blowing" dedication and creativity required to resolve problems.

No standard automotive solution could be built in time, so we created a new solution. He also added, how through the staff's joint efforts, the company was able to achieve a "combined 7000 vehicles a week", together with the production of Tesla's Model S auto and Model X SUV. According to the China Automobile Dealers Association, Tesla exported about 17,000 cars to China a year ago, making it the company's second-biggest market.

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But the company still only managed to crank out an average of 2,198 per week for the quarter. Tesla has struggled to meet its self-imposed goal of producing 5,000 of the vehicles per week since the beginning of the year.

Tesla Inc. made 5,031 lower-priced Model 3 electric cars during the last week of June, surpassing its often-missed goal of 5,000 per week.

"Now that Tesla has achieved the 5,000 mark [for the Model 3], it needs to do so on a steady, routine basis and with excellent quality", Michelle Krebs, an analyst with car-shopping website Autotrader, was quoted by The Los Angeles Times as saying.

He thinks the company can reach production of 10,000 vehicles per week, or roughly a half-million per year. The company said the new general assembly line was responsible for about 20 per cent of Model 3s produced last week.

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You might remember RBC Capital's Joseph Spak as the analyst who asked Elon Musk too many "dry questions" during Tesla's (NASDAQ:TSLA) first-quarter earnings call, or at least as Musk described it.

The Model 3, which is built at a factory in Fremont, Calif., retails for as low as $49,000, according to the AP.

Despite the simpler design and feature set, Tesla has struggled to get production numbers to a sufficient level. Only the long-range variant, which starts at $49,000, is available to the 450,000 people with Model 3 reservations. Tesla employees and enthusiasts have been celebrating it while Wall Street is doubting the significance of it. At the time, Tesla was producing 3,500 of the vehicles per week, he said.

While the Model 3 production rate is a success, sceptics warn the recent burst may not be sustainable.

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Tesla does not report sales, but instead reports how many cars it has delivered.