Tesla (NASDAQ:TSLA) Weeks Away from Hitting 7,000-M-3s/week Production Goal

Tesla (NASDAQ:TSLA) Weeks Away from Hitting 7,000-M-3s/week Production Goal

Tesla (NASDAQ:TSLA) Weeks Away from Hitting 7,000-M-3s/week Production Goal

$TSLA

Tesla Inc (NASDAQ:TSLA) CEO Elon Musk is pushing his factory workers in his Fremont, CA plant to consistently produce 7,000 M-3 EV sedans per week by the end of November, according to an internal e-Mail.

Mr. Musk said he planned to walk the entire M-3 production line on 27-28 November, from batteries to final assembly, and expected every station to be able to produce or process at least 50 units per hour, which would mean a maximum rate of 1,200 cars per day if everything ran perfectly.

“By the 28th, all Model 3 production subsystems need to be at 50+ [units per hour] steady, which is what’s needed for a true 1000 vehicles per day rate (taking equipment uptime into account),” Musk wrote.

He asked factory workers to flag any bottlenecks they see, saying maintaining a 7,000-unit-per-week production volume was “extremely important for [Tesla’s] prosperity.”

The company produced 53,239 M-3 sedans in the3rd quarter, which works out to roughly 583 cars per day, or a little over 4,080 cars per week as of early October.

In its latest report to investors, Tesla said production had “stabilized.” So, by its accounts, the company is routinely producing more than 5,000 M-3 sedans per week now. Bit that is a very long way from producing 7000 EVs per week,

“We are certainly over the hump on M-3 production,” Mr. Musk said earlier this month on the Recode Decode podcast. “For us, making 5,000 cars in a week for M-3 is not a big deal. That’s just normal. Now we’re working on raising to 6,000 and then 7,000 M-3’s a week, while still keeping costs under control.”

In related news, Mr. Musk has now promised customers that if they ordered a new M-3 by 30 November, Tesla would deliver the car by 31 December, to help capture an expiring federal tax credit. That begs the question, What about the back log of M-3 orders that have place holder deposits?

HeffX-LTN Analysis for TSLA: Overall Short Intermediate Long
Bullish (0.36) Bullish (0.46) Bullish (0.40) Neutral (0.22)

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