Tesla spikes after hitting Model 3 production goal hours after self-imposed deadline

Fredrick Soto
July 3, 2018

Today, Spak is out with a new research note on Tesla shares after the electric giant announced that it had produced 5,031 Model 3 electric cars in the last seven days of the second quarter, beating its 5,000/week target.

Tesla, which Chief Executive Elon Musk hailed on Sunday as having become a "real auto company", said it now expects to boost production to 6,000 Model 3s per week by late August, signaling confidence about resolving technical and assembly issues that have plagued the company for months.

"We either found a way or, by will and inventiveness, created entirely new solutions that were thought impossible", he continued.

For the second calendar quarter, Tesla says it produced a total of 28,578 Model 3 cars-almost triple the 9,766 it produced in the first quarter and vastly more than it produced a year ago.

This break occurs several months after Field was removed from his position as head of Model 3 production and replaced by Elon Musk.

Tesla's delivery numbers, particularly its 5,000 Model 3 per week milestone, has been received warmly by the company's investors. At the same time, Musk issued a voluntary recall of 123,000 Model S Teslas because of faulty power steering. "We believe in rapid evolution", Musk tells the Times in an interview-it took place at 3am Thursday, the only time the company said he'd be available.

According to a report by BBC, the 5,000th auto of the week rolled off the production line on Sunday morning.

In total, the company produced 28,578 Model 3s in the second uarter, for an average rate through the quarter of just under 2,400 cars per week.

Tesla also reaffirmed a positive cash flow and profit forecast for the year.

In order the reach the weekly deadline, Tesla build an entire new general assembly line between May and June in one of the auto parks of its Fremont factory in California.

Musk set a new goal of building 6,000 Model 3s a week, perhaps by the end of August. Tesla noted that the weekly production rate for Q2 more than doubled the Model 3 output during Q1, and that it had also reached the 5,000-units-per-week level with the Model 3, reportedly hours after the deadline according to Reuters. According to the China Automobile Dealers Association, Tesla exported about 17,000 cars to China a year ago, making it the company's second-biggest market.

A photograph of employees signing a banner welcoming them to the "Model 3 5K Club" was deleted from Twitter and remains on Reddit.

In the meantime, Tesla has concentrated on higher-end versions, including a new range-topping dual-motor performance version priced at $78,000, which has helped avoid even larger losses.

While it produced 53,339 vehicles, Tesla said it delivered 40,740 vehicles.

The Model 3 push has been tough for the company.

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