Tesla Model 3 production to hit 6,000 per week by end of August

Model 3 production has been a persistent challenge for Tesla since the vehicle was launched in July 2017.Chris Pizzello / AP

• Tesla expects to make 6,000 Model 3 sedans in a week by the end of August, the company said in its second-quarter earnings letter, and a total of 50,000 to 55,000 Model 3s in the third quarter.
• In 2019, the company expects to make 10,000 Model 3s per week.
• During July, Tesla made around 5,000 Model 3s per week multiple times.
• Achieving a consistent production rate of 5,000 Model 3s and 7,000 total vehicles per week is critical to the company’s goal of becoming profitable.

Tesla expects to make 6,000 Model 3 sedans in a week by the end of August, the company said in its second-quarter earnings letter, and a total of 50,000 to 55,000 Model 3s in the third quarter. 

In 2019, the company expects to make 10,000 Model 3s per week. While most of its production lines should be able to produce 10,000 Model 3s per week by the end of 2018, the company said, some areas of production will not be ready to handle that rate.

During July, Tesla made around 5,000 Model 3s, as well as 2,000 Model S sedans and Model X SUVs, in a week multiple times. The company did not specify how many times it hit that number.

Achieving a consistent production rate of 5,000 Model 3s and 7,000 total vehicles per week is critical to the company’s goal of becoming profitable. Tesla struggled to increase production after the Model 3 was launched in July 2017 and twice missed its self-imposed deadline to produce 5,000 in a week, but hit that rate at the end of June. During the second quarter, the company made more Model 3s than in the prior three quarters combined, in part due to a new production line, known as GA4, the company assembled in an outdoor, tent-like structure.

Tesla said in its second-quarter earnings report that its main assembly line, GA3, has not yet achieved a production rate of 5,000 Model 3s per week, but the company expects the line to hit that rate soon. 

On Tuesday, CNBC reported that Tesla was flying in non-manufacturing employees to help with production at its vehicle and battery factories. 

A Tesla representative told Business Insider that temporary reassignments are voluntary and do not have a major effect on production. The representative also said that employees who are reassigned are placed in roles that match their skills, and those who do not opt for reassignments will not be punished with negative performance reviews.

If you’ve worked for Tesla and have a story to share, you can contact this reporter at mmatousek@businessinsider.com

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