Tesla Reportedly Missed Model 3 Production Goal

Tesla had been aiming for a production rate of 6,000 Model 3 vehicles per week by the end of August and an overall production of 50,000 to 55,000 Model 3 vehicles throughout the third quarter.

New website Electrek has learned that the automaker missed the 6,000 unit production rate goal, but Tesla is nonetheless on track for its overall third quarter goal.

It follows Electrek’s report from last week about Tesla being on track for a production record this quarter but slightly behind its ambitious Model 3 goal.

Based on a reliable source familiar with Tesla’s production, the automaker built about 6,400 vehicles during the last week of August (from 24th to 31st midday) including about 4,300 Model 3 vehicles.

That is behind Tesla’s goal since the automaker previously disclosed that it was pushing for 6,000 units per week by the end of August.

That said, overall production for the quarter is now trending toward Tesla’s quarterly goal.

According to the same source, Tesla produced about 53,000 vehicles including over 34,700 Model 3 vehicles in Q3 as of Friday.

The automaker has already produced the same amount of vehicles as the entire last quarter with still a full month to go in the third quarter.

At the current production rate, Tesla should achieve at least the lower-end of their Model 3 production guidance, but the company is still attempting to ramp up to 6,000 units per week, which could result in better overall production if achieved by the end of the month.

 Pursuit of Profitability

No matter how you look at those numbers, Tesla is producing electric vehicles at an incredible rate. But it is also important that Tesla reaches its production goals in order for the company to become profitable and sustainable.

Based on available information, it looks like overall production goals are going to be somewhat easily achieved even though they missed their 6,000 Model 3 vehicles per week deadline and they have not even had another 7-day period at over 5,000 units per week.

It certainly looks like there were some production issues over the past two months, which could explain the many reports of delivery delays for Model 3 buyers. As a reminder production does not equal deliveries.

Hopefully, Tesla has a good reason for those, like focusing on Model 3 quality and profitability instead of higher output, but it remains to be seen.