Tesla hits weekly target of 5,000 cars, shares rise

Tesla (NASDAQ: TSLA) has finally reached its weekly target of producing 5,000 of its “mass-market” Model 3 electric cars.

The company said in a regulatory filing that it manufactured 5,031 vehicles in the California-based factory in the week ending 1 July.

“The last 12 months were some of the most difficult in Tesla’s history, and we are incredibly proud of the whole Tesla team,” said the company. “It was not easy, but it was definitely worth it.”

The company has increased production targets to 6,000 per week by the end of next month.

In an email obtained by electric car site Electrek, Elon Musk, the group’s chief executive said to employees: “We did it! What an incredible job by an amazing team.”

As well as the 5,000 Model 3’s manufactured, Tesla also produced 2,000 of the Model S and Model X cars in the same week.

Musk initially promised to manufacture 10,000 cars a week in 2018 but a number of production delays have caused a slowing down of production.

Whilst the news sent shares up five percent in early trading, analysts remain skeptical if the targets can be repeated.

“Reaching it is one thing. Consistently producing 5,000 per week with outstanding quality is another. I don’t think producing 5,000 once is anything to get excited about until it’s repeatable,” said Dave Sullivan, the product analysis manager at market research firm AutoPacific Inc.

The company has confirmed that it expects to turn a profit in the third and fourth quarters of this year. The company lost $710 million on $3.4 billion in revenue in the first quarter of 2018.

“It’s high time we became profitable,” said Musk. “The truth is you’re not a real company until you are, frankly. That’s our focus right now.”

 

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