Tesla (NASDAQ:TSLA) Not Producing M3’s in Numbers Musk Says

Tesla (NASDAQ:TSLA) Not Producing M3’s in Numbers Musk Says

Tesla (NASDAQ:TSLA) Not Producing M3’s in Numbers Musk Says

$TSLA

  • Elon Musk is trying to build cars in tents!

Tesla Inc. (NASDAQ:TSLA) is not producing enough Model 3s per shift to reach the 5,000/week target that CEO Elon Musk said it would reach by Saturday, 3 line workers at the company’s Fremont, California, assembly plant told Reuters this week.

The company was able to assemble and paint 210 Model 3s during the 2st of two 12-hour shifts on Wednesday, one worker said. On 1 of 2 Monday shifts, the company produced 305 of the EVs, another worker told Reuters.

The number of vehicles assembled per shift is displayed for line workers in the plant.

The company is running 2 12-hour shifts per day every day this week on the M3, the 2 workers who provided the production figures said. If the company produces 300 Model 3 vehicles during all 14 shifts, it would produce 4,200 cars for the week.

Tesla declined to comment on its production numbers or on employee reports of problems.

The M3, initially promised at a base price of $35,000, is meant to be the mass market vehicle that can propel electric-powered vehicles into the mainstream and Tesla into profitability.

But Tesla has struggled to produce the volume of cars it needs because of problems with the assembly line and other snafus.

The company’s Fremont, California, factory has also been plagued by a series of fires, including at least 2 in June.

At the company’s shareholder meeting earlier this month, Mr. Musk said it was “quite likely” that Tesla would be able to build 5,000 M3s per week by the end of June. At the time, Tesla was producing 3,500 of the vehicles per week, Mr. Musk said.

But the worker who provided the production figure for Wednesday’s 1st shift said bottlenecks persist.

“Paint cannot handle the load right now because they have the Model S and X that they normally do and now they have all these Model 3s,” the worker told Reuters. “The paint department just cannot keep up.”

“Basically we have been in a long endurance race, and now the coach is yelling at us for a 4-mile finishing kick,” said 1 employee at the company’s Gigafactory near Reno, Nevada, where batteries for the M3 are made.

To reach CEO Musk’s goal, the company has borrowed workers from its Model S and Model X lines this week to work on the M3, and Wednesday, factory supervisors announced to workers that everyone is to come in Saturday.

Earlier this month, Musk tweeted a photo of a new Model 3 production line built inside a tent on the company’s Fremont campus. “Needed another general assembly line to reach 5k/week Model 3 production,” CEO Musk tweeted on 18 June. “A new building was impossible, so we built a giant tent in 2 weeks.”

But the tented line is only producing a few cars so far, said the worker who provided the production figure for one of Monday’s shifts.

Often, those cars have to be reworked, said the worker who provided the Wednesday figure. “It’s a makeshift area,” the worker said.

Symbol Last Trade Date Change Open High Low Volume
NASDAQ:TSLA 350.85 28 June 2018 6.35 348.66 357.02 346.11 7,284,565
HeffX-LTN Analysis for TSLA: Overall Short Intermediate Long
Very Bullish (0.52) Very Bullish (0.52) Very Bullish (0.54) Very Bullish (0.50)

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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