“I think we just became a real car company…”
After years of empty promises and false – if hopeful – idealism, Elon Musk’s Tesla has finally delivered. By finally delivering on a long-standing promise to build 5,000 Model 3 cars in a week, the pioneering electric vehicle company has taken the first step on the road to profitability.
While this is a significant milestone for the automotive firm, it is something that has taken every ounce of effort to get done. In the past month, they’ve constructed a tent and a makeshift assembly line outside the factory to get to the magical production number.
According to Bloomberg, Tesla’s stock rose 4.6% in pre-market trading in the US, giving it a 2018 rise of over 10%. Tesla had originally hoped to reach the 5,000 Model 3/week target by late 2017, but production and logistics issues pushed the deadline a few months.
The Model 3 was first launched in 2016 as the affordable electric car for the masses. After the immense critical success of the Model S, Musk wanted to further the renewable energy revolution to include the American middle class. The basic Model 3 costs $35,000, while the Model S ranges from $69,500 to $140,000.
According to an internal e-mail from Musk to Tesla employees, the company produced 7,000 cars in the last week of the second quarter including the Model S and X versions. Apparently, due to the infrastructure put in place, Tesla is on course to manufacture 6,000 Model 3s per week from next month onwards.
This will come as an overdue sign of stability for those customers awaiting their purchases. Some online orders have been backed up to two years, going back to 2016. Even investors and high-profile clients have had to wait for the highly vaunted vehicle as production had been struggling.