Tesla has announced that it has met its production goal of being able to produce 1,000 Model 3 electric cars per day, which means that it can now build up to 7,000 units per week.
Elon Musk sent an email to Tesla employees confirming the milestone, but now Tesla needs to make sure that it can maintain that production rate. In his note to employees, Musk stated, “If you are able to help in any way with getting Model 3 production to a steady 1000 per day at excellent quality, everyone at the company should please consider this their top priority. Body production currently appears to be our limiting factor, so it needs the most support right now. Please focus on simplification and reducing cycle time first and then uptime.”
Now that Tesla has achieved the production milestone, it now wants to focus on reducing costs, which will help it be able to make a profit on the $35,000 Model 3, which has yet to be released.
“It’s important to bear in mind that the cost of the car is made up of about 10,000 unique parts and processes. depending on how you count it, the current cost of a standard range Model 3 would be around $38,000, so each part or process step only costs around $3.80. That means finding cost efficiencies is a game of pennies, even though it might not seem so.”
Tesla’s next goal is to be able to produce 10,000 Model 3 electric cars per week, but it’s not known when it expects to hit that goal.