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Tesla Model 3 Rises from Production Death

By Tony Franklin on August 27, 2018

Tesla has gone through hell trying to get their new Model 3 through production, and it has been well publicized. Now, at last, it appears that there is a light at the end of the tunnel.

Last June Tesla finally made their target production of 5,000 Model 3’s during the final week of the month. Ford was not impressed with this milestone, late as it has come. However, Elon Musk confirmed that this production target was again met for two weeks in July in a call with financial analysts. The next goal for the Model 3 is to get it up to 6,000 per week. CNBC suspects that Tesla is finally on the right track and should be able to surpass that target significantly.

After a tour of the factory, Evercore ISI analyst George Galliers said, "Tesla seems well on the way to achieving a steady weekly production rate of 5,000 to 6,000 units per week." Concerning the state of Tesla’s Model 3 production, Galliers commented, "We are incrementally positive on Tesla following our visit. We have confidence in their production. We did not see anything to suggest that Model 3 cannot reach 6,000 units per week, and 7,000 to 8,000 with very little incremental capital expenditure." Gallier’s team of analysts seemed quite pleased with Tesla's general assembly and their stamping segments, which "met or exceeded all the benchmarks.”

"From what we saw, it appeared that Tesla's Model 3 press is able to run two parts together (both right and left door)," Galliers described. They were unable to determine how many hits were made per hour, but when they asked an engineer, the response was a confident “we're not telling you that but plenty.” Stamping seems to have the ability to support all the Model 3 production targets and potential vehicle models down the road as well. The project is not done though. Tesla still has plenty of work to do. For now though, as they aim to double production of the Model 3 in 2019 to 10,000 units per week, they appear to be on the right track finally.

Source: CNBC: Thomas Franck

Tags: Electric CarsNews