Tesla has been dealing with the fallout from Autopilot crashes and overly aggressive Musk tweets in recent months, so a bit of positive news will do the company good. In a recent financial filing, Tesla reports that it has reached its Model 3 electric car production goal of 5,000 per week. CEO and founder Elon Musk also calls out an even higher recent production number for all Teslas.
The Tesla Model 3 is the company’s first “mainstream” electric vehicle. The Model S and Model X were both premium vehicles with starting prices around $ 80,000 and $ 60,000, respectively. The Model 3, by comparison, is a bargain at just $ 35,000. The base model has a smaller battery, a single electric motor, and no self-driving package.
Despite the simpler design and feature set, Tesla has struggled to get production numbers to a sufficient level. Customers have been putting $ 1,000 down payments on the Model 3 since last year, and demand far outstripped supply. The waiting list was about 18 months long as of early 2018, and it was only making about 2,000 cars per week. Musk ordered several production shutdowns this past Spring to retool the production process, which he admits suffered from an over-reliance on automation. Tesla’s goal of reaching 20,000 Model 3s per month seemed insurmountable, but it’s done that and more.
7000 cars, 7 days
♥️ Tesla Team ♥️
— Elon Musk (@elonmusk) July 1, 2018
In the latest regulatory filing today, Tesla says it made 5,031 Model 3 vehicles in the last week of Q2. That puts Tesla right where Musk promised. He noted in a tweet that when you factor in the number of Model S and Model X vehicles it made, Tesla is producing 7,000 cars per week. Tesla has also started rolling out more order offers to Model 3 reservation holders now that production had ramped up.
Musk has previously claimed that the 5,000 Model 3 benchmark would give Tesla enough revenue that it would not need to raise more money from investors. Tesla says it projects the next two quarters will turn a profit for the company, which would be a welcome change. There have only been two profitable quarters in the company’s entire history so far.
With the new production levels, Tesla has lowered the estimated wait time for a new Model 3. You can drop your $ 1,000 right now and get a standard version of the car in 6-9 months. The performance and qual-motor versions are expected to take between and two and five months.