With September starting, Tesla is now hurtling towards the final month of Q3 2018. This means renewed pressure to meet its self-imposed production goals, particularly when it comes to the Model 3 electric sedan. The Model 3 has given the company numerous issues since it entered production July last year, but since then, Tesla has managed to refine its manufacturing processes significantly, ending Q2 2018 by producing 5,000 Model 3 units in a seven-day period.
Tesla is aiming to sustain its optimum production rate for the Model 3 in Q3, and during the company’s second-quarter earnings call, CEO Elon Musk noted that the 5,000/week pace had been sustained during “multiple weeks” in July. Tesla is ultimately aiming to produce 50,000-55,000 Model 3 units during the third quarter, which gives the company enough leeway to accommodate weeks where it would fall short of its 5,000 Model 3 units per week goal.
According to a new report from Electrek, Tesla is indeed a little bit behind its Model 3 production goal this quarter. A source has reportedly informed the publication that as of Friday last week, Tesla had produced 34,700 Model 3 units in Q3. This translates to a weekly average below 5,000 per week, but it is still in line with the company’s 50,000-55,000 Model 3 target for the quarter. Hitting the 50,000 target, after all, just requires Tesla to produce a little more than 15,000 additional Model 3 units, and there is still almost a month to go until the end of the third quarter.
The publication’s source, which reportedly had provided accurate information in the past, also noted that Tesla’s production goals for the Model S and Model X are still on track. During the final week of August, for one, Tesla reportedly manufactured 6,400 vehicles including 4,300 Model 3 units. That translates to 2,100 Model S and Model X units being produced in a seven-day period.
We got our first Tesla Model 3 in December 2017. It was so damn good, we got another one in February 18 for my son. Now, these two cars are so great that my wife went shopping for a new car last month, she considered almost everything out there but what did she buy? Model 3. pic.twitter.com/zQ9aaeorwz
— Gene (@genejayne) August 30, 2018
Tesla is currently attempting to ramp its production of the Model 3 to 6,000 units per week by the end of Q3. While this goal might still be ambitious, the fact remains that the company would likely break records this quarter once more. Even if Tesla only produces 50,000 Model 3 units in Q3, plus ~2,000 Model S and X units per week, that would translate to more than 70,000 electric cars produced in a quarter. That’s a milestone for any American car company building electric cars.
Things are starting to look a bit better for the electric car maker. Amidst the fallout from Elon Musk’s privatization attempt and its subsequent cancellation, the company has lost its place as the most shorted US stock in the market. In a Twitter announcement, Ihor Dusaniwsky, Managing Director of Predictive Analytics at S3 Partners LLC, a financial analytics firm based in New York, stated that Tesla is now No.2 in the most-shorted US stock list. In its place is Amazon, which has taken the number one spot with a $9.97 billion short interest.
$TSLA short interest is $9.83 billion, 32.43 million shares shorted,25.43% of float. #Tesla shorts are up $638 million this week on -6.02% price move. 2.3 mm shares covered since The Tweet, $TSLA slides to #2 most shorted U.S. stock with $AMZN #1 with $9.97 billion short interest pic.twitter.com/cX0pVLagUE
— Ihor Dusaniwsky (@ihors3) August 31, 2018