Tesla Model 3 production still behind goals despite improvements

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Tesla Model 3 production still behind goals despite improvements

Gene Munster, an analyst from Loup Ventures, said on Bloomberg that Tesla is “probably going to miss” its Model 3 production targets this quarter, but that the news won’t be a surprise to investors. “It’s going to be worse before it gets better,” he said. Munster told Bloomberg that he predicts that Tesla will be able to churn out between 1,500 and 2,000 Model 3s per week, falling far short of the company’s goal of 2,500 per week.

Deutsche Bank analyst Rod Lache sent a note to investment clients that Tesla probably produced Model 3 sedans at a rate of 800 per week for the first quarter of 2018, suggesting that the number has likely swelled to about 1,100 per week as this is written. An internal memo to Tesla factory workers sent by Tesla engineering chief Doug Field and obtained by Bloomberg told employees at Tesla’s plant that it would be an “incredible victory” if the plant could produce 300 Model 3s per day.

“You will prove a bunch of haters wrong,” said the memo, referring to critics who cast doubt on Tesla’s ability to produce enough vehicles to satisfy demand. Field added, “The world is watching us very closely, to understand one thing: How many Model 3’s can Tesla build in a week?”

Field isn’t wrong. The world is watching Tesla with great interest, especially the hundreds of thousands of potential customers who have placed pre-orders for the Model 3 and who now wonder how long it’ll be before they could receive their new car. Here’s hoping production numbers continue to ramp up without a major negative effect on quality.

“This is a critical moment in Tesla’s history,” says Field. That, you might say, is an understatement.

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