The company faces several hurdles, including producing its electric vehicle battery modules at a faster clip and reducing its production bottlenecks, all while ensuring quality at the same time, Spak says. Estimates are from analysts that the company has a few months more to live, given its cash reserves, before the firm will be forced to tap equity or debt markets once again.
The company's Model 3 is priced at around $35,000, well below the prices for the Model S and Model X, and Tesla and its investors are counting on the Model 3 to lead the company to the promised land of profitability.
Invest wisely, my friends. Investors are anxious the company won't be able to deliver on the production of its first mass-market auto - the Model 3 (CNN). However, Tesla said that it was able to increase its weekly production rate from 793 units in the final seven days of 2017 to 2020 units over the last week, as it swiftly addressed production and supply chain bottlenecks over the quarter.More news: Dana White Conor McGregor Is 'Going to Jail' Fighting Future in Jeopardy
But on Tuesday the California-based firm said it had made more than 2,000 Model 3 vehicles in the past seven days - still some way below Tesla's original target of 5,000, and short of the 2,500 per week it had since scheduled for this March, but a healthier figure than many analysts had suspected.
During the release of its Q1 earnings, the company said it was aiming at increasing its Model 3 sales in order to help cut down losses and raise more revenue as it invests heavily in automobiles it hopes to design in the future.
Deliveries for the quarter came in just under 30,000 units, with Tesla shipping to customers 11,730 units of the Model S, 10,070 units of the Model X, and 8,180 units of the Model 3.More news: Prince Philip undergoing hip surgery in London
But a series of setbacks have left Tesla far behind schedule in turning out the Model 3 - for which almost 400,000 prospective buyers have already put down $1,000 deposits - and it is taking some extraordinary measures to turn things around.
The real takeaway from the report is that unlike some of Musk's other notable successes, the vehicle industry may not have been as ripe for disruption as Tesla would have hoped. 4,060 Model S and X vehicles were on their way to customers at the end of Q1, which was 68% higher than at the end of Q4 2017.More news: Ravens agree to deal with QB Robert Griffin III
If you want to add plug-in hybrids into the mix, Model 3 even beats the Toyota Prius Prime, which is now the best-selling plug-in hybrid vehicle in the USA with 6,468 units during the first 3 months of the year. Over the weekend, Tesla revealed that the driver had been using Tesla's autopilot software feature at the time, raising more questions about the safety of the company's self-driving technology. Of those, 9,766 were Model 3s. We can safely assume that no-one in the Tesla factory took holidays in the last fortnight.