Musk Says Tesla Model 3 Production Target Is 6,000 A Week By June
Following the temporary shutdown of Tesla Model 3 production, CEO Elon Musk has big plans for the months to come.
We reported about a brief Model 3 production stoppage a few months back, but weren’t sure if it was “the” upcoming pause that Musk had previously talked about. It looked as though perhaps that was the case, since March deliveries were up substantially and Tesla had a stellar quarter overall. In fact, it was the automaker’s best ever.
However, it wasn’t the big planned shutdown to fix the production process and ramp up production significantly. We know that now because the automaker just closed shop for the Model 3 for up to five days to improve automation. Musk recently admitted that he went overboard with automation for the Model 3 and it seems to have taken its toll.
The reported shutdown impacts Tesla’s factory in Fremont, as well as the Gigafactory. Once complete, the CEO claims that the goal will be to double production to about 6,000 units per week. He says that by June, when accounting for some margin of error, we will see Model 3 production at a minimum of 5,000 copies per week.
A few days ago, Bloomberg’s Model 3 tracker surpassed 3,000 units. However, within a day it was adjusted back down to around 2,800, which is where it stands at the time of this writing (2,866). Thus far, Tesla has missed all of Musk’s targets, but it seems that significant, newfound efforts are aiming to change that. Now is high time to get the ball rolling, and much more quickly.
According to the leaked email from Elon to employees, next month Model 3 production will be set for 3,000 to 4,000 units, and the automaker is moving to 24/7 operations. Musk writes:
Starting today at Giga and tomorrow at Fremont, we will be stopping for three to five days to do a comprehensive set of upgrades. This should set us up for Model 3 production of 3000 to 4000 per week next month.
Another set of upgrades starting in late May should be enough to unlock production capacity of 6000 Model 3 vehicles per week by the end of June. Please note that all areas of Tesla and our suppliers will be required to demonstrate a Model 3 capacity of ~6000/week by building 850 sets of car parts in 24 hours no later than June 30th.
As part of the drive towards 6k, all Model 3 production at Fremont will move to 24/7 operations. This means that we will be adding another shift to general assembly, body and paint. Please refer anyone you know who you think meets the Tesla bar for talent, drive and trust. Between Fremont and Giga, Tesla will be adding about 400 people per week for several weeks.
Musk also offers several productivity suggestions to assure the best results. A few are listed here:
– Excessive meetings are the blight of big companies and almost always get worse over time. Please get of all large meetings, unless you’re certain they are providing value to the whole audience, in which case keep them very short.
– Don’t use acronyms or nonsense words for objects, software or processes at Tesla. In general, anything that requires an explanation inhibits communication. We don’t want people to have to memorize a glossary just to function at Tesla.
– In general, always pick common sense as your guide. If following a “company rule” is obviously ridiculous in a particular situation, such that it would make for a great Dilbert cartoon, then the rule should change.
To read the email in it entirety, follow the links below.
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