Tesla hits 5,000 Model 3 production target

Tesla’s Model 3

Tesla’s Model 3

The 5,000th vehicle rolled off the production line early on Sunday morning, hours after the electric auto maker's chief executive Elon Musk's midnight goal.

Last week was special for Elon Musk and his electric vehicle company Tesla. The company badly needs cash from the compact cars to deliver on CEO Elon Musk's promise to post a net profit and positive cash flow in the third and fourth quarters.

Tesla had stated in the past that they would produce 5,000 Model 3 cars a week by the end of the second quarter of the year.

But the pullback in shares showed that investors were not won over by the news as they eyed lower-than-expected delivery numbers, the financial impact of ramping up production and the quality of the cars being built.

The Tesla Model 3 is the company's first "mainstream" electric vehicle.

If it still needs to be said, statements of Tesla's expectations should be taken with a fairly hefty serving of salt.

In the email, Musk wrote that production could hit 6,000 Model 3s a week by next month. To quickly put another assembly line in place, Tesla built a large tent at the factory site. At the time Musk said no production associates would be laid off and Model 3 production would not be impacted. The company also said its second quarter of 2018 was its most productive quarter ever, the second quarter in a row that it has made that claim.

If Tesla can produce a machine with genuine towing and payload abilities, reasonable daily range, and those workplace-oriented niceties, priced at $50,000 or less, the truck might have a shot. The Model S and Model X were both premium vehicles with starting prices around $80,000 and $60,000, respectively.

The news is obviously good for Tesla, and especially welcomed by those on the ever-growing Model 3 waiting list.

After working around the clock for weeks on end to surpass a production goal, Tesla Inc.is pausing some Model 3 production this week, according to people familiar with the matter. Couldn't be more proud to work with you.

Despite Tesla's recent Model 3 production burst at the end of the quarter, the automaker is still looking at an insanely long backlog of reservations for the vehicle. Wall Street investors, who have pushed the company's stock beyond $340 per share, are growing impatient with the losses.

One worker told Reuters that, to meet the goal, employees from other departments were dispatched to parts of the Model 3 assembly line to keep it running constantly, and breaks were staggered "so the line didn't stop moving".

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

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