Tesla Inc (TSLA) Will Ramp Production Up To New Highs

Tesla Inc (TSLA) Will Ramp Production Up To New Highs

Tesla Inc (TSLA) Will Ramp Production Up To New Highs

That would move Model 3 production up to round-the-clock levels.

Shares of Tesla Inc. traded lower Tuesday after reports that the company had shut down production of its Model 3 mass-market electric auto again to solve manufacturing bottlenecks. Pacific time on Tuesday and obtained by Jalopnik, CEO Elon Musk informed the company's staff about these plans, together with a number of other new changes being introduced to enable Tesla to finally turn a profit. Delays and lower-than-expected volume have postponed revenue from cars being delivered to customers from reaching Tesla's bottom line.

This means that Tesla will be adding another shift to general assembly, body and paint, Musk said, now targeting 1,000 more Model 3s per week by June than the 5,000-per-week target the company affirmed earlier this month when it reported that Q1 production rates came in below its own target.

Tesla will complete another set of upgrades in late May that "should be enough to unlock production capacity of 6000 Model 3 vehicles per week by the end of June", Musk continued in the email.

Tesla's Fremont factory lines have been running on two shifts.

The CEO also signalled Tesla is planning another pause in Model 3 output next month after stopping for three to five days this week to make updates to its factories in California and Nevada.

After a similar shutdown in February, Model 3, about which Tesla released almost the same statement, production did increase.

As Electrek reports, in the letter Musk confirmed that Model 3 production had reached 2,000 per week, which is double that attained in January.

Investors are closely watching to see if Tesla is able to meet long-delayed targets and quickly ramp up the Model 3, on which the company's future profitability rests.

Weeks following a crash that claimed the life of Model X owner Walter Huang, Tesla's response to the event continues to create controversy for the automaker and its Autopilot system.Huang, 38, . He acknowledged criticism that Tesla is "not a real company" until it generates profit and said this is a goal now that Tesla has more scale.

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