Tesla has announced that it will begin producing 6,000 Model 3’s each week by the end of August. The announcement from the firm came a month after it finally managed to reach a 5,000 Model 3s per week target that it had struggled to meet. As the firm raises its output, it will also iron out any issues at its factories to address bottlenecks to increase efficiency.
While the planned increase for this month may seem modest, it is by no means the limit for the firm. In its earnings release, it said:
“We aim to increase production to 10,000 Model 3s per week as fast as we can. We believe that the majority of Tesla’s production lines will be ready to produce at this rate by end of this year, but we will still have to increase capacity in certain places and we will need our suppliers to meet this as well. As a result, we expect to hit this rate sometime next year.”
With new heights in weekly production being targeted, Tesla expects to produce between 50,000 and 55,000 Model 3 vehicles in the third quarter. It also said its deliveries may outpace production in the quarter too, as its delivery system stabilises.
Tesla’s stock price rose in after hours trading thanks to the report. If Elon Musk can achieve everything that is stated, he might be able to regain some trust after a spate of Twitter gaffes and struggling to meet the earlier production targets of the Model 3.
Let us know in the comments whether you think Musk will turn things around to win people over again.