According to Tesla, the second half of the year 2018 would be profitable if the smart car manufacturer can meet its Model 3-unit productions as well as its delivery goals.
Tesla also stated that it’s planning to meet its manufacturing goals by producing 5,000 units of its all electric Model 3 vehicles per week by the end of June. this will make the lower priced model acquirable to drivers only after this target is met.
At this moment, the company is delivering a rear wheel drive, long range Model 3 to consumers at a starting price of $44,000. While the short range, rear wheel drive version of the same model was promised with a starting price of $35,000, according to CEO Elon Musk.
The company reported that it failed to meet its first quarter production goal and delivery targets for the Model 3 last April. Tesla manufactured 2,020 Model 3s during the ending week of the first quarter, just a tad behind the production goal of 2,500 vehicles weekly by the end of March.
In order to raise the Model 3 production pace, the company will have to amplify the workload in its Fremont, California factory – based on a leaked e -mail from Elon Musk. This would compel the company to add employees and shifts which will culminate in paying more overtime for workers and will increase the costs for Tesla.
Tesla’s shareholders are told that the company will prepare to stop manufacturing at its Fremont factory for 10 days this quarter, with the goal of improving processes in order to meet the Model 3 production target.
In Tesla’s statement, the company was able to create 2,270 Model 3s in seven days before the recent shutdown, marking a new record for Tesla.