Tesla is making 3,500 Model 3 vehicles a week, Elon Musk says

Photo by James Bareham / The Verge

Tesla is producing 500 Model 3 vehicles a day, or an average 3,500 cars a week, Elon Musk said during the company’s annual shareholder meeting Tuesday. That puts Tesla on track to hit the crucial 5,000-per-week goal by the end of the June, he added.

In early April, Tesla announced that it had officially missed its goal of making 2,500 Model 3 vehicles a week by the end of the first financial quarter of this year. It started the second quarter making just 2,000 Model 3s per week. Tesla has blamed bottlenecks in the production of the Model 3’s batteries at the company’s Gigafactory for the delays.

During the shareholder meeting, Musk acknowledged the toll its taken on him and Tesla’s factory workers. “This is the most excruciating, hellish several months that I’ve ever had,” Musk said, his voice breaking. “And a lot of other people at Tesla. But I think we’re getting there.”

Musk also said that full production of the entry-level $35,000 Model 3 would begin in the first quarter of 2019. This is the cheaper version of that car that most of the estimated 450,000 reservation holders are likely waiting for — and according to Musk, they’ll be waiting a little longer.

Musk said the smaller, approximately 50 kWH battery pack will be ready by the end of this year. He also noted that production of the lower trim car will likely begin in early 2019, three years after the car was first announced, and two years after the first deliveries went out.

Tesla decided early on in production that the first version of the Model 3 it would make was the one with the long range battery pack (an extra $9,000) and the premium upgrades package ($5,000), which together bump the starting price to $49,000. All-wheel drive is also a $5,000 option, so that means these new models will start at $54,000 for the foreseeable future — and that’s without Autopilot.

Musk tweeted recently that Tesla was holding back on making the cheapest version of what is supposed to be the company’s “mass-market” electric car in order to generate more revenue. As we learned earlier this year, when the company reported its earnings for the first quarter of the year, it’s currently losing money on every Model 3 that it ships, despite ultimately targeting a 25 percent margin on the car.

Comments

I think you mean 500 a day, not 50!

Theirs looks like a monthly average of an estimated figure

Corporate CEOs don’t make a habit of lying to investors and shareholders, since (for among other reasons) they tend to want to avoid prison.

"Corporate CEOs don’t make a habit of lying to investors and shareholders, since (for among other reasons) they tend to want to avoid prison."

If that was the case Musk would be in an orange suit right now. haha

A couple of years ago he said Tesla would sell 100k-200k Model 3s in 2017 (they sold less than 2k).
Then last year he said investors should have zero concerns about Tesla hitting 5k M3s per week by the end of the year (2017). It’s June 2018 and they’re still not making 5k/week.
The guy is a pathological liar. To be fair all CEOs are, but Musk stands out because he tells so many of them.

That’s not a lie, that’s optimism – and something obviously went wrong.

If I say "I bought a green apple", when I actually bought a red apple – that’s a lie
If I say "I’m going to buy a green apple", but they don’t have any green apples, so I buy a red apple, was that a blatant lie?

If Larry Page says "we’re going to double our revenue next year", and it doesn’t happen, maybe he’s being optimistic. If he makes the same projection a year later, and it doesn’t happen, maybe he got unlucky twice.
Ask yourself this, how many times would Larry Page have to make wrong projections, before he starts looking more like a charlatan and less unlucky? 3? 5? 10?

Here’s a list of 10 Musk "optimistic projections" (a.k.a blatant lies):
1. 100-200k M3s in 2017.
2. 5k M3s per week by the end of 2017.
3. "Tesla will never raise capital ever again" said Musk in 2011. They ended up raising money, every single year!
4. He said Model X will start production in 2014. It didn’t, it happened a year later.
5. He said Tesla will announce 2 to 4 new gigafactories by the end of 2017, he didn’t announce any.
6. For Solar panels he said 1GW capacity at Buffalo plant by 2016. He didn’t. The goal now is 2019.
7. He said The Gigafactory will be powered with solar panels, it isn’t. And this one is easy, they can just put them on the roof.
8. He said Tesla will sell $1B powerwalls in 2017, they didn’t, they sold less then $100M.
9. He said coast to coast autopilot trip in 2017. It didn’t happen. It has been postponed indefinitely now.
10. He’s been saying Tesla will have "fully autonomous cars in just two years" every year since 2014, and they’re no where near it (they’re stuck at level 2, behind Google and GM).
11. (bonus lie) He always bloats about Tesla’s automation prowess when the reality is that they are 5 times less efficient than their competitors. Toyota at the same factory as Tesla produced 75 cars per factory worker. Tesla makes 15 cars per factory worker. They’re so inefficient that they are closer to the pre-industrial revolution era than modern manufacturing.

These are not accidental lies, they are on purpose, done to hype the stock and nurture his image of the lone genius leading the world into the future. He is a genius alright, but at public relations.
Also there’s a reason he spends so much time on Twitter, for Tesla, their high stock price is what keeps them alive (they lose billions every year) so hyping it is Musk’s main job description.

It’s ok to admire someone, it’s not ok to blindly follow anyone.
It’s so unfortunate that we’ve entered an era where truth doesn’t matter, only hype is important. No wonder Musk doesn’t like journalists, he wants people to not ask questions and be loyal to the leader.

Savage bro. Just a Savage take down

everyone in the comments is always a successfull business person who knows how the everything works

"No wonder Musk doesn’t like journalists, he wants people to not ask questions and be loyal to the leader."
Really? You need someone to explaint to you how the media works

So dreaming big is wrong? how many other car manufactures changed the world?

"how many other car manufactures changed the world?"

Indeed he is.
He changed the world of wealthy greenwashers by enabling them to brag to their friends about how their 2.5 ton 0-60 in 3 sec car with falcon wings is "saving" the world.

closed-mindedness is strong with you

Naivete and gullibility is strong with you too.

By your definition, everyone is a pathological liar. You must have a total melt down every time they get the weather forecast wrong.

Calscot, not really. It depends on how many times someone lies.Check my comment above for more details.

Also, forgot to say, the weather man is not in control of the weather. Musk on the other hand is in control on his company.

The Bloomberg tracker isn’t accurate for short durations (months), it relies on too much circumstantial data (someone posting a picture including a VIN to social media). It’s fine for low-resolution tracking though.

The problem is that Elon actually did NOT say they are currently making 3500 per week – he just said all lines were now CAPABLE of this.

Bloomberg’s model also exceeded this a couple of weeks ago but there has been a shutdown and they are now ramping back up – so the 2500 they predict now seems reasonable.

In the next couple of weeks, I expect it will exceed 3500 per week once again, and according to Musk, steadily increase to 5000 by July. But on Elon time, let’s say August/September.

Now the real question is how many can they make if they aren’t in 150% production crunch mode? I’m glad to hear they’re getting 3500 off the production lines per week, but the way Musk described their ramp up, it does not sound safe or good for QC in the long run.

Possibly. The bigger issue is that "crunch time" means lots of overtime pay, especially in CA. That is almost certainly a big contributing factor to their losing money on every car that rolls off the line and frankly it seems unsustainable as a business model.

Good thing Musk pays garbage, 17 bucks an hour in California, and very high injury rates.

people are getting hurt and can’t even afford to live.

You know whose pay rate is garbage? The military. Compared to working in the military, working at Tesla would be a walk in the park. Too easy!

Actually, I have to disagree. I’ve been enlisted for 15 years and have always thought we were paid pretty well.

My nephew is a Marine Captain and does pretty well living in Hawaii.

You know whose pay rate is really garbage? Being a subsistence farmer in rural Sudan. Compared to being a Sudanese farmer, working in the military is a walk in the park!

Thanks for that irrelevant non-sequitur.

So you agree, Tesla pays well. Thanks for agreeing.

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