For the hundreds of thousands of people who continue to wait for their Model 3s, Tesla said, "The remaining net Model 3 reservations count at the end of Q2 still stood at roughly 420,000 even though we have now delivered 28,386 Model 3 vehicles to date". Unfortunately, numerous production hell issues - some of which were attributed to Musk's overly ambitious timelines - scuppered the plan. "We'd like to thank Doug for his hard work over the years and for everything he has done for Tesla", said a Tesla representative in a statement to Roadshow.
"The last 12 months were some of the most hard in Tesla's history, and we are incredibly proud of the whole Tesla team for achieving the 5,000-unit Model 3 production rate". The boost in productivity has been attributed to GA4, the new Tesla production line which is located in a tent.
The company said the new general assembly line was responsible for about 20% of Model 3s produced last week.
But the stock sank after several analysts questioned whether Tesla would be able to sustain the Model 3 production momentum, which is crucial for the long-term financial health of the company. Given the Model X crossover's 295-mile range courtesy of a 100-kWh battery, we presume the Tesla truck will have an optional 200-kWh unit.
Tesla met its production goals for the Model 3 last week, producing a total of 5,000 vehicles.
Tesla will have to prove to investors that it can sustain and increase its production pace, and some skeptics have bet against the company.
Deliveries in the second quarter totaled 40,740 vehicles - interpreted by industry observers as a little short of expectations - but not a major concern.
Despite the simpler design and feature set, Tesla has struggled to get production numbers to a sufficient level.
Having missed earlier production ramp up deadlines, Musk gave CBS a tour of the factory back in April, and promised to be hitting 5,000 Model 3s a week by Q3 of this year. Tesla recently opened up its order system to those in the U.S. and Canada with Model 3 reservations.
The company expects to increase production to 6,000 Model 3s per week by late next month. Customers have been putting $1,000 down payments on the Model 3 since previous year, and demand far outstripped supply. Tesla expects more orders for the compact electric vehicle to ramp once more once test drives for the Model 3 start getting offered in Tesla stores in the near future.
On Sunday, Musk tweeted Tesla had produced 7,000 cars in seven days. Wall Street analysts polled by Bloomberg have an average price target of $314 for the stock, which is now trading near $359 a share. These will be counted toward the automaker's third-quarter delivery tally.