Tesla Shocks Markets: Achieves Model 3 Production Target

3 sedan is displayed during its launch in Hawthorne

Tesla Shocks Markets: Achieves Model 3 Production Target

Tesla chief executive Elon Musk had originally set the 5,000-a-week benchmark for production of its battery-powered vehicle for the end of past year, but later postponed it until the end of June following a series of manufacturing problems during what Musk called "production hell".

Since taking over production of the Model 3, Musk has managed to drive numbers up and having just reached its goal of producing 5,000 cars in a week as of Sunday, July 1 with plans to push even further and reach the level of 6,000 cars per week by the end of the month. But that's not all.

Musk bragged that not only did they hit their target of 5000 Model 3s, but their total vehicle production for the week was 7000.

"The last 12 months were some of the most hard in Tesla's history, and we are incredibly proud of the whole Tesla team for achieving the 5,000 unit Model 3 production rate".

'What's more, with the widespread productivity gains throughout Tesla and the new production lines spooling up, we are on track to reach 6k/week for Model 3 next month'. The company said roughly 1,000 vehicles were put together there in the last week of the quarter. The assembly line, which CEO Elon Musk says was built in three weeks, made around 20 percent of the Model 3s produced last week.

In February past year, Tesla said in its financial results that it would "steadily ramp production to exceed 5,000 [Model 3] vehicles per week at some point in the fourth quarter and 10,000 vehicles per week at some point in 2018". "It was not easy, but it was definitely worth it", Tesla said in a statement. CFRA Research, an investment research firm, also questioned Tesla's ability to maintain its rate of Model 3 production, downgrading the stock to "sell" from "hold".

Musk had prioritized the weekly production of 5,000 Model 3s.

Tesla received an incredible number of reservations for the Model 3 early on even before most people had a chance to see the auto in person. Musk doubled down on profitability in the company's Q1 2018 earnings call, when he stated that it was "high time" for Tesla to become profitable. But he also warned at the time that Tesla was entering at least six months of "manufacturing hell" as it tried to hit the targets. As investors started to get restless, Musk kept on making grand promises for future Tesla models and new Model 3 versions, which must have added to the annoyance. The CFRA analyst stated that the company would likely be unable to sustain its production rate for the Model 3.

Tesla burned through more than USA $1 billion in cash in the first quarter.

The Tesla (which we codenamed "Model U" in our renderings) will also have a load-adjusting suspension, according to Musk.

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