Tesla Sets Target of 6,000 Model 3s per Week by End of June

American carmaker Tesla Inc. has set a new production target for the Model 3 to achieve its weekly goal of 5,000 units and leave a margin of error.  

Tesla chief executive Elon Musk stated that the company now aims to more than double its output to 6,000 Model 3s per week by the end of June, with operations running 24/7 at its factory in Fremont, California to meet the target.

The previous 5,000 Model 3s per week, according to Musk, did not allow for a margin of error across the Palo Alto-based group’s manufacturing process and supply chain.

Underscoring the firm’s need to accomplish the production numbers, Tesla will first halt operations at its Gigafactory in Nevada and Fremont facility for three to five days to perform a comprehensive set of upgrades that will enable it to acquire production rates of 3,000 to 4,000 per week in May.

The car giant will also do another set of upgrades in late next month, which should be enough to obtain output capacity of 6,000 Model 3s per week in June.    

With production at Fremont operating 24 hours a day, Musk said they will be hiring 400 people per week for several weeks at both manufacturing plants to have an additional shift of work for general assembly, body and paint to help facilitate continuous production of the Model 3.  

It was not specified how a third will be included to the production schedule. Tesla currently runs on two shifts at Fremont.

Executive analyst Akshay Anand said a fast pace is the enemy of quality, and that Tesla needs to prioritize quality first and volume second, adding that for many customers, this will be a first touch point with Tesla, therefore it needs to ensure the touch point is a positive one.

Tesla Under Pressure

Investors have been keeping an eye on Tesla to see if it is capable of accomplishing long-postponed targets and quickly increase production of the Model 3, on which its future success lies.

During the first quarter, the electric vehicle (EV) maker managed to build 9,766 Model 3s, but was unable to meet its target of 2,500 per week after falling 500 units short.

Moreover, Tesla’s decision to use robots to build Model 3s just made the process more complicated and delayed, which Musk acknowledged last week, saying it was a mistake and that humans are underrated.

Missed deadlines have resulted to the company's credibility with the market and its ability to generate profit being questioned. Musk stated that no new funds are needed this year, though several analysts disagree.

A casualty in one of its vehicles using the autopilot system, Moody's Investors Service’s credit rating downgrade, and a public dispute between Musk and safety regulators has also put Tesla under serious pressure.

Shares of Tesla were up by 3.1 percent to $296.72, following the news.

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