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Tesla achieves Model 3 production at 1000 / day, presses to maintain it and reduce costs

Tesla has achieved its goal of producing 1,000 Model 3 vehicles in one day, resulting in 7000 units per week,…

Tesla has achieved its goal of producing 1,000 Model 3 vehicles in one day, resulting in 7000 units per week, but it now focuses on maintaining production speed and reducing costs.

As we reported earlier this month, CEO Elon Musk said he would go the entire Model 3 production line from battery cell production to final assembly on 27 and 28 this month in an email sent to employees obtained by Electrek,

He said that all production The subsystems must be able to produce 50 units per hour, which is what he considers necessary for 1000 vehicles per day, at the end of his second day on the line.

In a new email to employees today, Musk confirmed that Tesla achieved the production speed of 1

000 Model 3 in one day.

But now they must be able to maintain production speed, which has been a problem for Tesla after reaching new production levels.

Musk told employees today:

“If you can help in any way getting Model 3 output to a still 1000 per day to excellent quality, everyone at the company should take this into account as their top priority . Body production seems to be our limitation factor at the moment, so it needs the most support right now. Please focus on simplifying and reducing cycle time first and then uptime. “

After they managed to maintain this production speed over time, Musk Tesla wants to focus on reduce the cost of model 3 to be profitable to produce standard model 3 of $ 35,000.

CEO add:

“It’s important to remember that the cost of the car consists of about 10,000 unique parts and processes. Depending on how you expect it, the current cost of a standard Model 3 program would be around $ 38,000 so each part or process step costs only around $ 3.80. That means finding cost-effectiveness is a game of pennies, though it may not seem so. “

Musk said that very small efficiency improvements, such as” better packing density or rearrangement process flow to fewer trucks “can have a big impact if everyone is working on it.

CEO said last month that base model 3 of $ 35,000 is “probably under 6 months away”.

Electrek’s Take

The ability to maintain new production speeds for Model 3 after short term outbursts has been a real problem for Tesla.

With a new potential production capacity of 7,000 units per week, it is probably difficult to do.

Not only on Tesla’s side but also for suppliers previously burned by the company’s unstable production.

Given that Tesla now slows down the ramp with no clear timeline for when they will achieve the ultimate goal of 10,000 model 3s per week.

It seems that focus is n It is also encouraging to see Tesla focus on producing the standard $ 35,000 Model 3, which has been one of the biggest critics of the vehicle program.

At a cost of $ 38,000 they are not really too far away, in my opinion. As production increases, they will achieve improved economies of scale. And with the coming new battery module design, they should be able to make a $ 35,000 version profitable in the next 6 months.

We also need to remember that very few vehicles will be sold to $ 35,000 by options. 19659003] What do you think? Let us know in the comments section below.

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