Struggling Tesla speeds up production of Model 3 vehicles

Struggling Tesla speeds up production of Model 3 vehicles

Tesla began producing electric cars at its plant in Fremont, California, six years ago, starting with small quantities and increasing to about 100,000 vehicles last year.

Based on this estimation, it would mean that Tesla delivered between ~4,700 and ~5,900 Model S vehicles and between ~4,000 and ~5,000 Model X vehicles in the United States during the first quarter.

Some analysts said there were signs that the company might have prioritised the cheaper vehicle, seen as crucial to its profitability, over its Model X SUV and its more-established and expensive Model S sedan.

The carmaker halted Model S and Model X production at the very tail of the month because it was ahead of schedule to hit first quarter targets. Tesla is still aiming for a goal of producing 5,000 Model 3 sedans a week.

Investors have been anxiously awaiting Tesla Model 3 production numbers as rumors have been swirling about problems at the electric automaker. Tesla achieved that during a rough quarter for the production ramp up of the Model 3 and it exited the quarter with over 2,000 Model 3 vehicles in transit to customers.

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But unfortunately for Musk, production of the mass-market Model 3 hasn't been as easy as he seemed to hope.

Tesla also sought to dispel quality concerns for the Model 3, which GTM reported on last month. My job as CEO is to focus on what's most critical, which is now Model 3 production. Tesla is not high on the list of New Energy carmakers - its cars account for just 3 percent of all battery-electric vehicle sales - but they are certainly at the top of the battery-electric pecking order when it comes to luxury features and price.

Tesla made just under 9,800 Model 3s from January through March. Within that time, it was able to double weekly production of Model 3s and shipped a total of 8,180.

It's bad news bears for Tesla. For now, investors appear to have been reassured by the Q1 results. The mass production of automobiles, on the other hand, has been perfected through decades of intense competition, and Tesla's slowly finding out that maybe the surviving companies are good at manufacturing after all.

"Taken as a whole", he wrote, "Tesla's forecast burn rate and debt maturities across 2018 and 2019 add up to around $5.5 billion. The implied margin of error is exceedingly tight". At a cost of US$35,000 apiece, the company's debut electric sedan for the mass market promises a 215-mile (346-km) range, a sub-six-second 0-60 miles per hour (96.5 km/h) sprint and Tesla's evolving suite of autonomous driving technologies.

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