Elon Musk speaks onstage at Elon Musk Answers Your Questions! during SXSW at ACL Live. Photo by Diego Donamaria/Getty Images for SXSW
It doesn’t surprise me that there are planned outages to install new equipment, perform maintenance or upgrade software and hardware. Some key questions about this include was this the planned length of time and was it needed to address on-going or new production issues to achieve the “about 2,500 Model 3 vehicles” per week goal by the end of March.
This may be exactly what Tesla needs to ramp production
Elon Musk said on the December results conference call “As for Model 3 production, we continue to make significant progress every day, and we're targeting a weekly production rate of 2,500 vehicles by the end of March and 5,000 by the end of Q2. And as you've seen in the letter, the quarter-over-quarter production of Model 3 is rising exponentially.”
In its emailed statement Tesla added that temporary downtime is normal and that other interruptions will probably occur. This may include the automated systems for the Gigafactory’s Zone 1 and 2 that are supposed to be delivered in March by Tesla’s Grohmann team.
Or could it be the latest excuse in early April?
Tesla should be announcing its preliminary March quarter production and delivery results in the first few days in April. In its January 3 preliminary results the company said “As we continue to focus on quality and efficiency rather than simply pushing for the highest possible volume in the shortest period of time, we expect to have a slightly more gradual ramp through Q1, likely ending the quarter at a weekly rate of about 2,500 Model 3 vehicles. We intend to achieve the 5,000 per week milestone by the end of Q2.”
Tesla has moved the production goalposts multiple times for all its models. The company may get to its target of 2,500 per week and reiterate its 5,000 per week goal by the end of June. However, I don’t think many people would be surprised if there is an explanation for it not quite getting to the 2,500 level.
">Tesla emailed confirmation that it stopped production of the Model 3 between February 20 to 24 at its Fremont factory. In an emailed statement a Tesla spokesperson said, “Our Model 3 production plan includes periods of planned downtime in both Fremont and Gigafactory 1. These periods are used to improve automation and systematically address bottlenecks in order to increase production rates. This is not unusual and is in fact common in production ramps like this.”
Elon Musk speaks onstage at Elon Musk Answers Your Questions! during SXSW at ACL Live. Photo by Diego Donamaria/Getty Images for SXSW
It doesn’t surprise me that there are planned outages to install new equipment, perform maintenance or upgrade software and hardware. Some key questions about this include was this the planned length of time and was it needed to address on-going or new production issues to achieve the “about 2,500 Model 3 vehicles” per week goal by the end of March.
This may be exactly what Tesla needs to ramp production
Elon Musk said on the December results conference call “As for Model 3 production, we continue to make significant progress every day, and we're targeting a weekly production rate of 2,500 vehicles by the end of March and 5,000 by the end of Q2. And as you've seen in the letter, the quarter-over-quarter production of Model 3 is rising exponentially.”
In its emailed statement Tesla added that temporary downtime is normal and that other interruptions will probably occur. This may include the automated systems for the Gigafactory’s Zone 1 and 2 that are supposed to be delivered in March by Tesla’s Grohmann team.
Or could it be the latest excuse in early April?
Tesla should be announcing its preliminary March quarter production and delivery results in the first few days in April. In its January 3 preliminary results the company said “As we continue to focus on quality and efficiency rather than simply pushing for the highest possible volume in the shortest period of time, we expect to have a slightly more gradual ramp through Q1, likely ending the quarter at a weekly rate of about 2,500 Model 3 vehicles. We intend to achieve the 5,000 per week milestone by the end of Q2.”
Tesla has moved the production goalposts multiple times for all its models. The company may get to its target of 2,500 per week and reiterate its 5,000 per week goal by the end of June. However, I don’t think many people would be surprised if there is an explanation for it not quite getting to the 2,500 level.
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