The Tesla Model 3 is a force to be reckoned with in the EV segment. It is giving other car manufacturers nightmares while creating an extensive and unprecedented surge in demand from the customers. Tesla is now forced to boost the overall production of its cars.
It’s all about Tesla’s reputation now
Investors like to measure Tesla by its ability to manufacture its blockbuster nameplate – the Tesla Model 3, at scale. The nameplate has helped Elon Musk’s company turn into a full-fledged auto manufacturer. However, its biggest success is its biggest roadblock as well. As Model 3 is one of the most prominent makes by the company, it has to make more cars to handle the supply quickly.
The company’s dream of going mainstream will never be a reality if it cannot handle customers’ demand. They designed a car for the masses, away from their luxury sedan Model S and now, they have to live up to the promise and ramp up the scale of production. It is no secret that the car has had a wobbly start to manufacturing. Musk even conceded that a large part of the assembly line was automated early on in the production cycle, which led to the initial hiccups. During an earnings conference call last year, he noted that the company “automated some pretty silly things.”
Are things getting better now?
Tesla has finally got a firm grip on its Model 3 production and also improved their efficiency across the production line. In the last quarter, the company set up a new record for deliveries, thanks to an improved production line. June was specifically good for the carmaker as it delivered 77,550 units of its most popular car.
The company is also planning to balance the supply side by boosting production at its Fremont, California plant. According to Bloomberg, the company is preparing to raise factory output. On Tuesday, the automotive president Jerome Guillen noted in an email that he couldn’t be too specific about what the company intends to do to increase output. However, he mentioned that Tesla reached new heights in output and efficiency across all production lines.
The company is playing the cards too close to its vest. No one knows if the increased output will be for Model S, Model Y, or Model 3. It previously indicated that Model Y will be available by early 2020, which means its manufacturing operations should be up and running by now. However, there are chances that Musk’s firm builds more Model 3s in the wake of rising demand.
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