Economy

Shouting CEO, changing rules: inside Tesla's Model 3-building sprint

Shouting CEO, changing rules: inside Tesla's Model 3-building sprint

In a suddenly escalating war of words with Tesla, Ford PR has chosen to Go Further.Elon Musk on Wednesday took a jab at his MI rival in an interview with The Wall Street Journal when he said. With Wall Street analysts fearing that delivery delays would expand the Model 3's 420,000-customer backlog, the stock crashed.

The job cuts are part of a company-wide restructuring to address excess staff in some areas due to the company's speedy growth, Musk said in an email to employees.

Tesla hit its weekly goal of producing 5,000 Model 3s, its more affordable, mass-market vehicle.

The man who was once in charge of manufacturing at Tesla has left the company - which is fresh off a production milestone.

However, it has been burning through cash to produce the Model 3, and delays have also potentially compromised Tesla's position in the electric auto market as a host of competitors prepare to launch rival vehicles.

"This is very positive news for Tesla because the Model 3 takes them from a niche core producer to a mainstream automobile manufacturer", Tigress Financial Partners analyst Ivan Feinseth said.

With the new production levels, Tesla has lowered the estimated wait time for a new Model 3.

"Given that Tesla has never made an annual profit in the nearly 15 years since we have existed, profit is obviously not what motivates us", Musk said in the message.

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That same report also said Tesla will occasionally pull its machines off the production line and crank them beyond manufacturer specifications, just to see how fast they can run.

Shares of Tesla fell 2%, near 335.60 during midday trading on the stock market today.

The Model 3 assembly line at Tesla's factory in Fremont, Calif. The Model S and Model X were both premium vehicles with starting prices around $80,000 and $60,000, respectively.

Despite Tesla's recent Model 3 production burst at the end of the quarter, the automaker is still looking at an insanely long backlog of reservations for the vehicle.

In the morning of Sunday, July 1, about five hours after the self-imposed second-quarter deadline had passed, the number 5,000 flashed on a countdown screen viewed by Tesla's Model 3 assembly-line workers.

He thinks the company can reach production of 10,000 vehicles per week, or roughly a half-million per year.

The Tesla (which we codenamed "Model U" in our renderings) will also have a load-adjusting suspension, according to Musk. Yet Bloomberg later revealed that Tesla met the target by radically increasing labor input, including moving production to three-shifts-per-day, seven days a week.

In June this year, Musk confirmed "difficult but necessary" layoffs were taking place at Tesla in an attempt to boost profits.