Tesla has finally met its Model 3 production goals. Tesla CEO, Elon Musk emailed staff yesterday congratulating them on the massive milestone. “Not only did we factory gate 5000 Model 3’s, but we also achieved the S & X production target for a combined 7000 vehicle week!” the email reads.
7000 cars, 7 days— Elon Musk (@elonmusk) July 1, 2018
♥️ Tesla Team ♥️
Musk praises his staff for their hard work and dedication. “We did it! What an incredible job by an amazing team. Couldn’t be more proud to work with you. It is an honor. The level of dedication and creativity was mind-blowing. We either found a way or, by will and inventiveness, created entirely new solutions that were thought impossible.”
Tesla's self-imposed target of producing 5000 cars per week was announced about 6 months ago after Tesla missed its original Model 3 production goal in December 2017. Hitting the target is not only a boost for morale in the company that has been hit by controversy after controversy, it means the Model 3 production program is able to make a profit.
Tesla finally rewarded after heavy investment
The company invested heavily into production capacity of over 5,000 units per week and it really needed to hit that target in order to see any profit. Musk has told investors that the company is aiming to become cash flow positive during the second half of the year.
Tesla is expected to release the official production and delivery numbers for the second quarter early this week. Rumors swirled that the factory had reached the target after a Twitter user named Marsalis C posted a picture showing employees signing a poster that says "Model 3 5K club."
In order to achieve the ambitious target Musk reportedly moved his office to the factory floor while a huge tent was constructed to house additional production equipment. "It was pretty hectic," said one worker who described the atmosphere as "all hands on deck."
Period of "production hell" seems to be over
Initially, Tesla announced it would hit the 5,000 cars per week production rate in December 2017. However, "production hell" set in, according to Musk himself. Musk and other Tesla executives frequently detailed the frustrating production issues.
At the most recent Tesla stockholder's meeting, however, several members thought Musk might've bitten off more work than he could handle and voted to oust Musk as chairman of the company he founded. Tesla members voted to keep Musk in that position, but Musk was visibly shaken after he took to the stage to continue with the annual presentation.
As recently as early June, Tesla only produced 3,500 cars per week. The month itself proved rough for Tesla as a company. In total, it laid off 9 percent of its total workforce. It suffered two fires at the Fremont plant. Internally, it accused a former employee of sabotage for speaking to the media in a whistleblowing scandal.
Investors eager to see if numbers continue
Investors are sure to be watching the production figures as they come in. Tesla has also opened up other production lines at the Fremont factory, but no word from the company as to how much those new production lines affected the recent production rate. According to media reports, the Model 3 units being built by the plant are the higher-priced versions rather than the affordable $35,000 version of the sedan.