The Tesla Model 3's production hell will hopefully be a distant memory soon.
The Tesla Model 3 has been plagued with well-publicized production issues over the last few months. However it seems the situation is finally improving.
Back in June, the automaker reached an important milestone after successfully meeting its target of producing 5,000 Model 3s in the final week of the month. Suffice to say, Ford wasn't very impressed with this achievement. Musk also confirmed this production target was met for at least two weeks in July during a financial call with analysts. Now, the goal is to ramp Model 3 production up to 6,000 a week, but CNBC reports the automaker is on track to exceed that target by a significant margin.
"Tesla seems well on the way to achieving a steady weekly production rate of 5,000 to 6,000 units per week," Evercore ISI analyst George Galliers said after having a tour of the factory. "We are incrementally positive on Tesla following our visit. We have confidence in their production. We did not see anything to suggest that Model 3 cannot reach 6,000 units per week, and 7,000 to 8,000 with very little incremental capital expenditure." The team of analysts were also very impressed with Tesla's general assembly and stamping segments, which "met or exceeded all the benchmarks which [they] had been for."
"From what we saw, it appeared that Tesla's Model 3 press is able to run two parts together (both right and left door)," Galliers explained. "While we were unable to determine hits per hour, when we asked an engineer, the response was a confident 'we're not telling you that but plenty.' Stamping seemingly has the capacity and capability to support all Model 3 targets and potentially future vehicle models as well." Tesla still has its work cut out however, as the automaker aims to double production of the Model 3 in 2019 to 10,000 units per week.