Tesla Model 3 Production Will Run 24/7, Musk Says

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Model 3 production fell short of the weekly target of 2,500 at the end of the first quarter and a number of Wall Street analysts say they do not believe it will succeed in producing 5,000 Model 3s per week in the second quarter, as Musk has promised.

The email came a day after Tesla announced it will temporarily stop production of the Model 3.

Tesla has been in production hell for the Model 3 as it hasn't been able to properly ramp up production for its mass-market electric vehicle. Last week, the company built 2,250 Model 3s, he said, along with 2,000 Model S and Model X electric cars.

A Tesla Model 3 seen in a showroom in Los Angeles January 12, 2018.

Overshooting the previous production goal by 1,000 cars per week is necessary to account for potential issues in Tesla's complex supply chain, Musk reportedly said in the email to employees. It warned of possibly more periods of downtime in coming months, they are here and now.

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Part of the reason for the delay in production is that the technology deployed at the Fremont, California Plant is struggling to adapt, says Musk: "We put too many new technologies in the Model 3 at the same time" he said, adding that "instead of accelerating the production of model 3, the robots have slowed it down".

The automatic blog Jalopnik had first published Elon Musk's email on Tuesday and the authencity was confirmed by sources.

The company said the move was a planned production pause of up to five days.

According to Bernstein analysts, Tesla has not only automated stamping, painting and welding like most other manufacturers, but also tried to automate final assembly.

The shutdown of the assembly line was meant to improve automation and systematically address bottlenecks to increase production, a normal move by vehicle companies, Tesla said on Monday. In essence, the company may run the assembly line for a longer period of time and with more workers on the line each week, but it might still be dealing with the same problems that have plagued Model 3 production for the past nine months, opting for a costlier route to achieve a production target. The Wall Street consensus is at $320.

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