Elon Musk: Tesla is increasing its production capacity by more than double with Tesla Model 3 – Sat May 19

A recent statement from Elon Musk confirms the fact that Tesla is increasing its production capacity by more than double. This enables them to produce 6000 units per week. Such declaration came on the backdrop of Model 3 production missing the budgeted target. It is to be noted that in the last quarter, the company missed the target of Model 3 by 500 units. The company manufactured 2000 units against the target of 2500 units.

Tesla is about to become a profitable entity

An email from the Elon Musk detailed the following points:

  • Elon highlighted the fact that the increase of production rate by 100 percent is rarely seen in the automobile industry.
  • Giga and Fremont production facilities will be closed for three to five days in order to set up comprehensive set of upgrades. These upgrades will enhance the production capacity with 3000 to 4000 units per month.
  • Tesla has engaged it suppliers and distributor to enhance their own capacity in order for the company to achieve its production objective.
  • Additionally in order to meet the objective Fremont facility will be moved to 24/7 operations. Thus a new shift will be added to aid the production in the enhanced operations.
  • An addition of 400 people per week will be employed for several weeks.
  • Precision will be the key focus of the production strategy, where by lower tolerances will make the model 3 build precision ten times better than any car in the world.
  • In order to control the expenditures, Elon Musk asked his team to cut every expense that does not add value to the company.
  • Non-performing contractors or supplies will have their contract cancelled by Monday.
  • Only those meetings that provide value to the company will be held.
  • There ought to be free flow of information between different departments
Disclaimer: The information on this site is provided for discussion purposes only, and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell securities.