Elon Musk: Tesla is preparing to increase Model 3 production substantially

Elon Musk: Tesla is preparing to increase Model 3 production substantially

Electric vehicle manufacturer Tesla Motors CEO Elon Musk has informed company employees in a recent email that preparations are underway at the company to substantially increase production of Model 3 units. Tesla Motors stock faced decline as the company wasn’t able to achieve earlier set target for Model 3 deliveries. The mass market Tesla Model 3 will be crucial for the company to prove its ability to deliver on its promises and investors are keeping a close watch on Model 3 delivery data.

Musk also said that to achieve the mentioned objective, Tesla is shutting down Model 3 production for 3-5 days in Gigafactory 1 and Fremont, so that a comprehensive set of upgrades can be delivered at the two facilities.

According to Musk’s email to Tesla employees, the forthcoming upgrades at Gigafactory 1 and Fremont will pave the way for increasing Model 3 production to 3000-4000 units per week from May 2018.

Musk also added alongside that another set of upgrades scheduled to commence in late May will enable Tesla to unlock a targeted production capacity of 6000 Model 3 units per week by June-end; thereby marking a potential two-fold increase in the production of the vehicle. After accounting for a margin of error, Tesla is hopeful of achieving 5,000 Model 3 units per week, across all production processes and suppliers, in June.

In a further elaboration of Tesla’s Model 3 plans going forward, Musk said in the email: “By having a Model 3 subsystem burst-build requirement of 6k by the end of June, we will lay the groundwork for achieving a steady 6k/week across the whole Model 3 system a few months later.”