Earlier this month, Tesla’s CEO suggested that 1,000 per day was likely achievable by November 27 or 28. Sure enough, it now appears as though the automaker has hit that goal on some, but not all fronts.
In an email sent to Tesla employees, Musk is now reportedly encouraging employees to continue to push to keep production at high. Musk wrote:
“If you are able to help in any way with getting Model 3 production to a steady 1000 per day at excellent quality, everyone at the company should please consider this their top priority. Body production currently appears to be our limiting factor, so it needs the most support right now. Please focus on simplification and reducing cycle time first and then uptime.”
Musk apparently commented on the situation regarding the base $35,000 Model 3 as well. As he states, cost-wise, Tesla is not quite there yet:
“It’s important to bear in mind that the cost of the car is made up of about 10,000 unique parts and processes. depending on how you count it, the current cost of a standard range Model 3 would be around $38,000, so each part or process step only costs around $3.80. That means finding cost efficiencies is a game of pennies, even though it might not seem so.”
Musk had previously stated that the base Model 3 would likely enter volume produciton in Q1 2019, so there’s still some time to drive down costs. Quoting Musk’s September comment:
“We will definitely offer a $35,000 version of the Model 3. And probably at the end of this year is when we will be able to make a smaller version of the battery pack, and get into volume production of $35,000 version in Q1 next year. We would definitely honor that obligation, and we would do so right now if it were possible.”