Skip to main content

Technology Tesla on track to make 8,000 Model 3s per week, analyst says

A row of new Tesla Model 3 electric vehicles is seen at a parking lot in Richmond, Calif. on June 22, 2018.

Stephen Lam/Reuters

Tesla Inc is on its way to make 8,000 Model 3 cars per week even as it burns more cash, Evercore analysts wrote in a note on Thursday, following their visit to the electric-car maker’s California facility.

Tesla produced 5,031 Model 3 electric cars in the last seven days of the second quarter, the company said in early July, meeting its long-elusive production target after several hiccups.

“Tesla seems well on the way to achieving a steady weekly production rate of 5 to 6k units per week,” Evercore analysts said after a two-day visit to the Tesla facility.

Story continues below advertisement

“In addition, the capex required and constraints that need to be overcome to reach 7 to 8k units per week seem well within reach.”

The company is under pressure to prove it can increase the production of Model 3, its lowest-priced car, amid production challenges and cash burn, as it seeks to become a mass-market automaker.

Evercore had earlier forecast production of 123,000 Model 3s during the second half of the year, but the analysts said they may need to boost that by as much as 7 per cent after the tour.

Meanwhile, Tesla Chief Executive Officer Elon Musk last week said he wants to take the company private, creating a whirlwind in the market, drawing lawsuits and attention from U.S. regulators for the unorthodox disclosure of critical company news.

Tesla shares were down 0.6 per cent at $336.41 in morning trade on the Nasdaq.

Report an error
Tickers mentioned in this story
Unchecking box will stop auto data updates
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Discussion loading ...

Cannabis pro newsletter