(NASDAQ:TSLA) has suspended its Model 3 assembly line in what the company was a planned production halt, the EV continues facing major production problems ramping up its most important vehicle. We reached out to Tesla about the email, but a representative declined to comment on it.
By comparison, in it's most recent delivery update earlier this month, Tesla said it made 9,766 Model 3 cars in the first quarter, which translates to an average 751 vehicle per week. Last week, the company built 2,250 Model 3s, he said, along with 2,000 Model S and Model X electric cars.
Tesla CEO Elon Musk has set an aggressive new target for production of the Model 3.
We've reported over the past week on the "production hell" that has engulfed the Tesla Model 3. "Actual production will move as fast as the least lucky and least well-executed part of the entire Tesla production/supply chain system", Musk writes in the email. Tomorrow, it will stop work at Fremont, for three to five days. While all of this is supposedly happening, Musk also wants to drive Tesla toward profitability. It warned of possibly more periods of downtime in coming months, they are here and now.
"Another set of upgrades starting in late May should be enough to unlock production capacity of 6,000 Model 3 vehicles per week by the end of June", Musk wrote, according to Electrek. Tesla Model 3 production has been plagued with battery module assembly problems, as well as steel welding issues, among others.
"While temporary suspensions to production, in order to improve manufacturing engineering/line rates, are not uncommon in the auto industry, particularly during a ramp-up, we believe that the news will once more be taken negatively by the market; providing more honey to the bears", Evercore ISI analysts said.
Given the long pattern of delays and renewed Wall Street skepticism, this may not seem like a bad option for the electric automaker.