Tesla Model 3 Production to Rise Despite Six-Day Shutdown

Tesla Inc which faced numerous backlash from the public including its investors and its customers last year due to its weak and slow production of its mass-market vehicle the Model 3 is reportedly pushing its production to exceed more than 500 vehicles per day this week despite an impending shutdown on its California factory.

This is higher than Tesla’s reported production rate of 2,270 from the end of April to as much as 3,500 Model 3 vehicles starting this week. The company has missed its own production targets as well as posted a continuous massive cash spending during the past couple of months which pushed its shares lower during the past couple of quarters. However, a report last month revealed that the company. 

However, during the beginning of April, the American electric car manufacturer announced that it has successfully boosted their overall production for the first quarter to a total of 34,000 with 10,000 of the said numbers composed of the mass-market Model 3 sedan.

Tesla announced then that the Model 3 production has gone up by twice as much its weekly rate during the third quarter with around 2,020 Model 3s being produced for the first quarter. 

Tesla shares which have lost more than 18% since the beginning of the year due to a mostly negative outlook on its Model 3 production and deliveries, were seen to be up and have recorded a massive price rally during the beginning of the year before losing ground due to an announcement from the U.S. National Transportation Safety Board that another investigation will be held against Tesla regarding a car crash involving a Tesla Model X SUV. Shares of the company were still able to recover during the following trading sessions following the announcement.

Current Tesla Production Plan

On Tuesday, Tesla chief executive officer Elon Musk announced that the production of the Model 3 sedan will likely exceed 500 vehicles per day later this week which would mean around 3,500 Model 3 vehicles being produced this week compared to Tesla’s weekly rate of 2,270 during the end of April. Also this month, the company announced that the production target for its Model 3 remains on track with their production set to touch as much as 5,000 every week in the next couple of months.

Reports have also revealed that Musk is trying to pinpoint any source of a potential bottleneck in their production which would dampen their current production rate through an email to his employees. Musk has also previously stated that the company is going through a reorganization which will allow the company to face production problems, staff departure from the company as well as crashes involving a number of its vehicles.

While it is expected to show a rise on its production, Tesla has announced that production at its factory in California will be paused for six days by the end of May due to fixes needed to be made on its assembly line for its new Model 3 sedan. A previous warning have revealed that a 10-day shutdown needed for the company’s long-term profitability may also be announced which will delay volume production of the Model 3 sedan. Tesla has declined to comment on the said matter.

See also: Tesla to Release Earnings Results for First Quarter of 2018

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