Following consistent delays in Model 3 production, Tesla is attempting to fine-tune their automation strategy to solve production bottlenecks.
In its letter, Tesla said Model 3 production hit 2,270 per week at the end of April, the third straight week that it hit over 2,000.
"Based on every measurable metric, Model 3 is already the highest quality vehicle we have ever produced, and this is unquestionably due in large part to automation", Tesla said. If you get bullish and expect that Tesla will jump to 3,000/week in that time period, we're talking perhaps 10,000 Tesla Model 3s in April. As of right now, Musk said the cars Tesla is currently producing are totally capable of full autonomy, give or take a couple of computer updates pertaining to things like processing power and whatnot. In March, the group estimated that Tesla delivered 3,820.
That said, it might not make sense to open a second factory overseas while Model 3 production is still struggling at home.
Surely, however, the Tesla fans will ignore both the sales data and the car's lack of profitability, and keep pouring fuel onto the Tesla hype fire.
We're not at the point where excuses stop mattering, so Elon Musk better have some good answers on the Tesla Q1 earnings call.
Tesla said gross margins on the Model 3, which today are slightly negative, would be close to flat in the second quarter and grow to "highly positive" in the second half of the year.
Musk eventually became somewhat irate with questions related to Model 3 production and capital expenditure, and cut off several callers.
Elon Musk reportedly has a net worth over $20 billion.
If there's a greater investor obsession at the moment than whether it will produce 5,000 or 6,000 or however many cars the analysts feel it needs to produce in a week to be successful financially; I haven't seen it. The biggest hurdles, he said, would be regulatory and that regulators would be influenced by the way the press treats the technology.
Tesla has engaged it suppliers and distributor to enhance their own capacity in order for the company to achieve its production objective. "The boring questions can also be categorized as the tough ones", AutoPacific analyst Dave Sullivan tells Bloomberg.
During the latest conference call, the Tesla chief also hit out at the media, calling journalists "irresponsible" for writing about the dangers of autonomous vehicles. But the company rushed its Model 3 to market, making mistakes in manufacturing whose effects are now being felt, and investor skepticism has risen.
Autopilot: what's the status in the development of the company's semi-autonomous driving product. He commented on the recently announced lawsuit by fellow electric truck manufacturer, Nikola calling it ridiculous.
But we've come a long way since then.
In April, Tesla said it would not need to return to markets for more capital because it expected to generate cash from sales of the Model 3. Existing shareholders don't like raising capital this way because it dilutes the value of existing shares-and Musk claims that it's not needed-but it's an option if Tesla finds itself needing more cash.