Tesla hits Model 3 manufacturing milestone

Business News

SAN FRANCISCO (Reuters) – Tesla Inc (TSLA.O) nearly produced 5,000 Model 3 electric sedans in the last week of its second quarter, with the final car rolling off the assembly line on Sunday morning, several hours after the midnight goal set by Chief Executive Elon Musk, two workers at the factory told Reuters.

The 5,000th car finished final quality checks at the Fremont, California factory and was ready to go around 5 a.m. PDT (1200 GMT), one person said. It was not clear if Tesla could maintain that level of production for a longer period of time.

Tesla did not immediately respond to a request for comment.

Tesla had a goal of producing 5,000 Model 3s per week before the close of the second quarter on Saturday to demonstrate it could mass produce the battery-powered sedan.

Money-losing Tesla has been burning through cash to produce the Model 3, and delays have also potentially compromised Tesla’s first-to-market position for a mid-priced, long-range battery electric car as a host of competitors prepare to launch rival vehicles.

Production of the Model 3 has been plagued by a number of issues, including problems with an over-reliance on automation on its assembly lines, battery issues and other bottlenecks.

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.

“It was pretty hectic,” said one worker who described the atmosphere as “all hands on deck.”

Another worker speaking after the 5,000th car was made described the factory as a “mass celebration.”

Tesla is likely to announce production and delivery numbers for the quarter later this week, and investors will watch to see whether the company can keep up its end-of-quarter production speed.

The company regularly engages in so-called “burst builds,” temporary periods of fast-as-possible production, which it uses to estimate how many cars it is capable of building over longer periods of time.


Leave a Reply