Musk doubles down on Tesla Model 3 achieving targets
ELON Musk expressed confidence about Tesla achieving the next production goal for its crucial Model 3, predicting that manufacturing will become a strength for the electric-carmaker over time.
The chief executive said it’s “quite likely” that Tesla will build 5 000 of the sedans a week by the end of this month.
The money-losing carmaker has said its forecasts for profit and cash generation in the second half of this year – which Musk reaffirmed during Tesla’s annual meeting on Tuesday – are dependent on reaching this target.
“It’s difficult to become a mass-manufacturing car company,” Musk, 46, said after shareholders voted down a measure that would have required an independent director to replace him as chairperson.
“No one has succeeded in doing this in a very long time in the US.”
Manufacturing has befuddled Tesla ever since Musk predicted 11 months ago that “production hell” would be ahead for the first car the company was trying to make in volumes.
Missed targets for the Model 3 contributed to the company burning through more than $1 billion (R12.7bn) in three of the last four quarters.
One of the reasons for Musk’s assurance that Tesla is turning the corner on manufacturing is the addition of a third general assembly line that completes the process of putting together the Model 3. – Bloomberg