Tesla: Elon Musk has done it
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Tesla: Elon Musk has done it

Technocrat celebrity Elon Musk has done it: he’s driven his electric carmaker, Tesla, past a significant milestone that Wall Street thought was out of reach. The milestone in question is the production of 5,000 Model 3 sedans per week, and it was originally set for December 2017. A number of setbacks saw this target pushed back, and Musk himself eventually stepped up to take ownership of the production line. Against analysts’ expectations, it paid off, and Tesla, in Musk’s words “just became a real car company.”

Tesla’s production win saw its share price surge continue at the end of the month

graph 0307 tesla

SOURCE: Yahoo Finance

Achieving a production target of 5000 Model 3’s per week took some doing: in a rush to beat the clock, Musk created a giant tent in the company’s parking lot with its own production line. Exactly what’s in that tent is still the subject of speculation, and the company’s next challenge is to demonstrate that its production quotas are sustainable at high quality. Michelle Krebs, an analyst with car-shopping website Autotrader, said: “Now that Tesla has achieved the 5,000 mark, it needs to do so on a steady, routine basis and with excellent quality.”

Still, hitting 5,000 units per week is a big win for Tesla, and both it and investors are currently in celebration mode. In an internal email, Musk was emphatic about the scale of the win. He wrote to employees:

“We did it!! What an incredible job by an amazing team. Couldn’t be more proud to work with you. It is an honor. The level of dedication and creativity was mind-blowing. We either found a way or, by will and inventiveness, created entirely new solutions that were thought impossible. Intense in tents. Transporting entire production lines across the world in massive cargo planes. Whatever. It worked.“

Disclosure

Dominion holds Tesla in its Global Trends Managed and Luxury Funds.


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