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Tesla finally hits its Model 3 production goals

Tesla finally hits its Model 3 production goals

"With the widespread productivity gains throughout Tesla and the new production lines spooling up, we are on track to reach 6K/week for Model 3 next month", he said.

Q2 production totaled 53,339 vehicles, a 55% increase from Q1, making it the most productive quarter in Tesla history by far.

"I think we just became a real auto company".

Tesla, which Chief Executive Elon Musk hailed on Sunday as having become a "real vehicle 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.

Tesla confirmed the contents of the email.

Separate from today's announcement, Levy also writes that reports that Tesla is asking for additional $2,500 non-refundable deposits from Model 3 reservation holders to configure "as a little unnerving, as it seems to be an aggressive attempt to meet otherwise hard targets of being cash-flow positive in the third quarter". Production of the Model 3 had been a hot topic for the past 12 months since assembly of the compact electric sedan began, and as Tesla dealt with a significant number of logistical and technological challenges to achieve the expected production levels. "Whatever. It worked", he said.

A 2018 Tesla Model 3 electric vehicle is shown in this photo illustration taken in Cardiff, California, U.S., June 1, 2018.

Another worker speaking after the 5,000th auto was made described the factory as a "mass celebration".

Tesla nearly reached its targets for Model 3 production last night, making it just a few hours after midnight passed yesterday morning in a reveal that boosted its share price by 4.5 per cent.

In financial reports that same month, Tesla reasserted its pledge of 5,000 Model 3 units per week.

Tesla is finally catching up to CEO Elon Musk's promises. Meanwhile, production of Model S and X vehicles were flat at 24,761, slightly higher than last quarter but below the 28,320 vehicles Tesla manufactured in the fourth quarter of 2017.

GA4, our new General Assembly line for Model 3, was responsible for roughly 20% of Model 3s produced last week, with quality from that line being as good as our regular GA3 line. Reservation holders waiting for the Model 3 welcomed the news like a Christmas basket.

That suggests that Tesla was able to generally meet its production target through manual labor, rather than the automation Musk originally promised would make Tesla a competitive force in manufacturing.

Of course, pumping out Model 3 wasn't the only concern some had.

The 5,000th vehicle rolled off the assembly line at 5 a.m. on Sunday, five hours after Tesla's self-imposed deadline. Model 3 reservations totaled 450,000 at the end of the first quarter.

Hitting the 5,000-a-week target is a major achievement for Musk, who first revealed the Model 3 in late 2016.

Tesla has received around 450,000 Model 3 reservations but the cheapest version of the auto, priced at $35,000, is not yet available to customers.

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.