Tesla said in announcing its quarterly results that it expects approximately 5,000 units of the Model 3 to roll off the production line in two months’ time. The company, however, has a hand in it.
Tesla has announced that it has been making more than 2,000 Model 3 units per week for three consecutive weeks prior to the temporary production shutdown in April, rising to 2,270 units in the final weeks of April. With the production pause in April, Tesla has made a number of upgrades so that higher numbers can be produced in the coming months. Ultimately, the company wants to achieve a weekly production number of 10,000.
Production of the Model 3 has long been a concern for Tesla and is the main reason that $6,500 is lost every minute, according to Bloomberg. Several times the proposed target numbers have not been met, mainly due to too high a degree of automation in production, according to Musk. It is said that the Model 3, unlike the Model S and X, consists of a relatively large amount of steel, which means that more welding is required.
Due to the problems with the production of the Tesla Model 3, the figures for the past first quarter of this year are not rosy. The manufacturer suffered a record loss of 592 million euros. That was a loss of 275 million euros in the same quarter a year earlier.
Free money flow, which basically indicates how much money actually comes in a company, was more than a billion dollars negative in the past quarter. This figure was also more than a billion dollars negative in the second and third quarters of 2017. Tesla says it expects free money flow in the last two quarters of this year to be positive and the manufacturer expects to make a profit.