Tesla hits Model 3 weekly production goal for first time

Tesla’s Model 3

The accounts vary slightly: Elon Musk reportedly sent an internal email saying that Tesla hit the target of producing 5,000 Model 3 cars in a week. But that's not all. Model 3 production for the three month period hit 28,578 cars - more than Model S and Model X combined - a three-fold increase over Q1. Tesla noted that the weekly production rate for Q2 more than doubled the Model 3 output during Q1, and that it had also reached the 5,000-units-per-week level with the Model 3, reportedly hours after the deadline according to Reuters.

'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'.

Wall Street analyst Gene Munster from Loup Ventures has issued his expectations for Tesla's (NASDAQ:TSLA) financial performance this coming quarter, stating that the Elon Musk-led company will start being profitable by September 2018.

Last summer, when the first Model 3s began rolling off the assembly line, Musk promised to build 5,000 per week by December and 10,000 per week in 2018.

In February previous 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".

The Goldman Sachs analyst David Tamberrino warned in June that Tesla would most likely miss its Model 3 targets, echoing the scepticism of many of his peers. "We believe in rapid evolution", Musk tells the Times in an interview-it took place at 3am Thursday, the only time the company said he'd be available. "It was not easy, but it was definitely worth it", Tesla said. Moreover, Levy adds that Tesla's recent announcement that Model 3 reservation holders need to fork over an additional $2,500 to secure the auto "seems to be an aggressive attempt to meet otherwise hard targets of being cash flow positive" during the September quarter. But the credit will be reduced to $3,750 in the first half of 2019; $1,875 in the second half of 2019; and then expire at year's end.

In June this year, Musk confirmed "difficult but necessary" layoffs were taking place at Tesla in an attempt to boost profits.

When Tesla first revealed the Model 3 in 2016 Musk set a goal of making 5,000 sedans every week. The company had failed to meet any of its production and delivery targets for the Model 3 up until now. The Model S and Model X were both premium vehicles with starting prices around $80,000 and $60,000, respectively.

Wall Street was divided on whether Musk and Tesla could pull it off.

Tesla burned through more than U.S. $1 billion in cash in the first quarter. That was responsible for around 20-percent of the Model 3 produced in the final week.

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