Tesla said Wednesday that it’s on target to produce 2,500 Model 3 sedans per week by the end of Q1 and 5,000 by the end of Q2. But, the company is still feeling production pains.
The company said in its earnings report:
“Model 3 ramp has demonstrated the difficulty of accurately forecasting specific production rates at specific points in time. What we can say with confidence is that we are taking many actions to systematically address bottlenecks and add capacity in places like the battery module line where we have experienced constraints, and these actions should result in our production rate significantly increasing during the rest of Q1 and through Q2.”
Nearly 500,000 people have reserved the Model 3, paying $1,000 refundable fees.
Tesla told investors and reservation holders last month to brace for lower production of the Model 3. Tesla advised at the time that it would hit 2,500 Model 3s weekly by the end of the first quarter and 5,000 Model 3s weekly by the end of the second quarter. Several weeks later, the company is sticking to those numbers.
On a conference call, Musk sounded confident that production problems can be resolved.
“If we can send a Roadster to the Astroid Belt, we can fix Model 3 production,” Musk said, referencing the SpaceX Falcon Heavy launch from the day before. “It’s just a matter of time.”
Musk said new manufacturing equipment tested in Germany will be delivered to Tesla’s factory in March, which will be significantly more efficient than the current line. Tesla’s current manufacturing line is “semi-auto,” using a mix of automation and human workers.
The company said in its earnings report:
“Model 3 ramp has demonstrated the difficulty of accurately forecasting specific production rates at specific points in time. What we can say with confidence is that we are taking many actions to systematically address bottlenecks and add capacity in places like the battery module line where we have experienced constraints, and these actions should result in our production rate significantly increasing during the rest of Q1 and through Q2.”
Nearly 500,000 people have reserved the Model 3, paying $1,000 refundable fees.
Tesla told investors and reservation holders last month to brace for lower production of the Model 3. Tesla advised at the time that it would hit 2,500 Model 3s weekly by the end of the first quarter and 5,000 Model 3s weekly by the end of the second quarter. Several weeks later, the company is sticking to those numbers.
On a conference call, Musk sounded confident that production problems can be resolved.
“If we can send a Roadster to the Astroid Belt, we can fix Model 3 production,” Musk said, referencing the SpaceX Falcon Heavy launch from the day before. “It’s just a matter of time.”
Musk said new manufacturing equipment tested in Germany will be delivered to Tesla’s factory in March, which will be significantly more efficient than the current line. Tesla’s current manufacturing line is “semi-auto,” using a mix of automation and human workers.
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