Tesla Production Hits 7K Cars a Week

Tesla Production Hits 7K Cars a Week

Tesla Production Hits 7K Cars a Week

The company produced just 2,425 in the fourth quarter.

The Los Angeles Times writes, "Optimism about the Model 3 transforming Tesla into a much bigger carmaker that sells to the mass auto market sent the company's market capitalization past Ford Motor Co. and General Motors Co. for the first time a year ago".

Musk added, "I think we just became a real vehicle company". There have only been two profitable quarters in the company's entire history so far.

As the end of the quarter neared, Musk spurred on workers, built a new assembly line in a huge tent outside the main factory, and fanned expectations that Tesla could hit its target, including tweeting pictures of rows of auto parts and robots over the final days of the quarter.

The company now says it expects to hit 6,000 Model 3s per week by late August, with its Model 3 assembly line under the plant's roof reaching 5,000 on its own. It's also unclear how much longer the company will need this line and the tent, or if more outdoor assembly systems will be necessary to reach future targets.

Shares surged more than 5% when news of the production milestone crossed. It was not easy, but it was definitely worth it.

That is a sentiment shared by Dave Sullivan, manager of product analysis at market research firm AutoPacific Inc. The auto is still held together by about 5,000 welds, but engineers concluded that some 300 were unnecessary and reprogrammed robots to assemble the steel underbody without them.

Back in July 2017, Musk said that he expected to be able to produce 20,000 Model 3s a month by that December. Over time he expects it to rise, though.

Take a walk around Tesla's new "service plus centre" in Auckland.

Shares of Tesla fell Monday morning by almost 2.4 percent to $334.90 as of 9:19 a.m. PDT. Tesla had stated in the past that they would produce 5,000 Model 3 cars a week by the end of the second quarter of the year.

Production delays have caused Tesla to burn through at least $1bn (£760m) as it struggled to ramp up production.

Overall, Q2 2018 production came to 53,339 vehicles.

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

Tesla reported Monday that it made 28,578 Model 3s in the second quarter more than three times as more than it did in the previous quarter. The company had failed to meet any of its production and delivery targets for the Model 3 up until now. Model 3 reservations totaled 450,000 at the end of the first quarter. The company hasn't said when it will start producing the $35,000 version.

As Tesla erected a tent in which to make the sedans, the manner of the cars' construction became as closely watched as the output itself.

Follow Tesla's stock price in real-time here.

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