Tesla Inc reached a milestone critical to Elon Musk's goal to bring electric cars to the masses - and earn some profit in the process - by finally exceeding a long-sought production target with the Model 3. For the first time, Model 3 production (28,578) exceeded combined Model S and X production (24,761), and we produced nearly three times the amount of Model 3s than we did in Q1. Since then Elon Musk, the automaker's CEO, has gone to extremes to fulfill his promise of making 5,000 cars a week by the end of June. According to the group, the latest batch of Model 3 VINs comprised of Long Range RWD cars - a stark contrast to the 2,237 vehicle identification numbers registered by the company last week, which were largely dual motor AWD.
Analyst Brian Johnson of Barclays warned investors in March to be wary of brief "burst rates" of Model 3 production that were not sustainable. To put some context to how remarkable it would be for Tesla to hit that figure, it was considered news just over three years ago when Tesla made 11,160 cars total in the whole of Q1, and when you add up all electric and plug-in hybrid vehicles sold in the U.S. by any manufacturer in the whole of March (a record month of sales), you only get 26,373. Midway through last month, however, Musk revealed on Twitter that the first Model 3 Performance has rolled off from a new assembly line, which was set up in a sprung structure on the grounds of the Fremont factory.
In May, Tesla sent a new battery assembly line via cargo planes to its Gigafactory battery plant outside Reno, Nevada in order to speed production, as first reported by Reuters.
In a photograph from May, a 2018 Tesla Model 3 sits at a dealership in Littleton, Colo.
"We did it!" Musk said in his email to Tesla employees Sunday evening, obtained by Bloomberg. The high number of customer vehicles in transit for Model 3 was primarily due to a significant increase in production towards the end of the quarter. Tesla recently opened up its order system to those in the United States and Canada with Model 3 reservations. Bloomberg reports that the standard battery version of the auto, starting at $US35,000, still isn't available in the design studio, so customers can either order a higher-priced version, continue to wait, or cancel their order.
Tesla confirmed the contents of the email.
Steady progress has enthused others, however, and Tesla's market value is close to that of General Motors.
The new deposits will provide a much-needed cash injection into the company to the tune of millions, depending on how many reservation holders go through with the purchase.