Tesla Aims For Model 3 Production At 7,000 Per Week By November 28

NOV 16 2018 BY MARK KANE 20

Elon Musk will check the production lines personally.

Tesla finally is going to increase production of Model 3 to 7,000 per week by the end of November since there’s been no major progress from the record of 5,000 in late June.

Elon Musk sent an email to employees stating that he will walk the entire Model 3 production line on November 27 and 28 from battery cells, modules and packs at the Gigafactory to car assembly in Fremont.

Because Tesla now sells a less expensive version of the Model 3, production needs to reach 1,000 Model 3 per day (or 30,000 per month) to prove financial sustainability.

More cars are required due to the expansion of upcoming sales to Europe, Asia and Australia, too.

Source: Bloomberg

Categories: Tesla

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20 Comments on "Tesla Aims For Model 3 Production At 7,000 Per Week By November 28"

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Wasn’t the previous 5000 total for ALL models? S X and 3?

No, for the Model 3. 7k for all. So now they should be aiming for 9k for all.

Do Not Read Between The Lines

They managed to hit rates of 7k _total_, with 5k Model 3, though not sustained.
This is just about ramping Model 3.
They need to be able to improve production over the next few months, not just for global sales, but to produce the SR withh positive margin in North America in 2019Q1.

The (Bloomberg) article doesn’t say they are increasing to 7000 a day on that day. That is an extrapolation.

The source says he will walk the production line, on those days because, “[f]rom battery cells to finished vehicles, all assembly areas need to be able to support making 1,000 cars per day, Musk said”.

So he’s going to check the entire line to try to see if there are any problems that would block ramp up to 7000 a day.

7000 / week, not day.
They need to produce 1000 / day (assuming 7 day production).

Oop a typo, I mean 7000 per week in the above sentence.

Vague wording indeed. It makes it sounds like his aura will magically and instantly cure any snags that are preventing 1000 M3/day. Since none of us here believe in magical cures, it would have been nice to know what plans or steps were going to be put into place to get them to that 7000/wk number.

The plan is finding any bottlenecks and fixing them. That’s actually pretty clear from his wording.

But if Elon is the most qualified guy to assess the production line, there’s reason to be concerned!

The whole angle seems speculative and designed to pump up the Elon brand, which may well be stronger than the Tesla brand as it is.

Musk has been deeply involved with volume EV production longer than anyone on the planet. You know someone better?

He is the one ultimately making the decisions — so he needs the best information on the situation he can possibly get. Taking a look first-hand is always better than relying on the filtered summary by someone else…

I wouldn’t rule out the rapid ate of Tesla and EV production is what is keeping gas prices below $2.50 a gallon for the time being which is benefiting me a great deal.

Also Teslas are really starting to gush into Virginia were you see two or three of them every day.

Do Not Read Between The Lines

More oil production.
Less demand.
Price is very sensitive to supply-demand balance.

Do Not Read Between The Lines

The less demand isn’t EVs, it’s coming from weakening of economies outside the developed nations.

Ocean, I believe that BEVs and PHEVs are going to effect total demand for oil products/gasoline/petrol soon, but I don’t think sales have been high enough, long enough, to do so yet. As DNRBTL notes, it is probably more due to decreased demand due to slowing economies combined with increased production. And US fracking is playing a large role in the increased production.

Earlier it was supposed to be 10k per week this year. Before that a string of goals they never got close to. But I guess 7k isn’t terrible and gives some hope for the future.

I’m just speculating, but… it doesn’t seem likely to be enough to avoid raising still more capital. Lots of debt coming due and huge investments ahead, not enough cash on hand, and not enough profit coming in to do everything without more funding. But maybe proving viability if the company didn’t need to grow is enough to convince investors..?

Checkout Hyperchange

What “string of goals they never got close to”?…

Did you read the Q3 earnings report? Do you have any specific qualms with the plans laid out in there?…

1000 per day when the leaf is selling 1000 per month….

More like ~8,000 per month worldwide…