It’s been a very exciting month already for Tesla (NASDAQ:TSLA) as it was revealed at the beginning of the month that the electric vehicle maker has hit its Model 3 production goal.
CEO Elon Musk took to his Twitter account on July 1st and wrote, “7000 cars, 7 days ♥️ Tesla Team ♥️“
Tesla had reported to investors that it produced 5,031 Model 3 sedans in tghe final week of the quarter, just hitting the deadline in time. It also made 1,913 Model S sedans and Model X SUVs.
The question that has had everybody wondering since Tesla introduced the Model 3 is how many can it make a week.
Musk had a lofty goal of making 5,000 a week that many had doubted would ever be realistic but Musk proved all the nay-sayers wrong despite a couple of delays.
Musk had originally wanted to hit the goal by the end of 2017 and then pushed the goal to the end of the first quarter of 2018. It actually ended up happening at the end of the second quarter in 2018.
So now that this goal was met, what does Musk do? He increases the goal. Tesla is now aiming to make 6,000 Model 3 vehicls a week by August.
According to analyst Gene Munsters of Loup Ventures however, a safer bet would be to rely on September to hit that goal.
“This 5,000 production number was the first time in about nine months he’s gotten one right. I think it’s safe to always dial back what he’s saying, that’s why we think [Tesla’s] going to meet the production number by the end of the September quarter,” Munster remarked on CNBC’s “Fast Money.”
He added, “If they hit that number, it’s going to equate to 48,000 model 3s produced in the September quarter. That should get them to profitability, slightly profitable. It’s not going to be wildly profitable in September, I just want to warn everyone, but… it moves them in the right direction.”
Despite hitting the production goal, Tesla still saw its shares dip slightly after the news. Munster explained, “The bears have their case to say that even though that 5,000 number was pretty, they had to throw everything at it to get there — the reality is they haven’t ramped.”
Tesla is also asking Model 3 reservation holders in North America for $2,500 more to fulfill their orders.
Potential Model 3 owners who have put down a $1,000 refundable deposit to “reserve” one of the company’s Model 3s, must pay an additional $2,500 to turn their reservations into an order. All of the money will go towards the price of the car.
The e-mail that will be sent out to the reservation holders reads, “You can now design and order your Model 3. As we continue to add new options, we recently introduced Model 3 Performance — with an even faster acceleration: from zero to 60 mp in 3.5 seconds. Model 3 Performance also comes with dual motor all-wheel drive and every premium option available: 20″ Performance Wheels, performance brake calipers, Premium White Interior and a carbon fiber spoiler for improved aerodynamics. Design and order your Model 3 today for delivery in as soon as 2-4 months.”
Tesla (NASDAQ:TSLA) has said that buyers can cancel their orders within three days for a full refund but after that, Tesla will keep the money.