Click to Skip Ad
Closing in...

If you buy through a BGR link, we may earn an affiliate commission, helping support our expert product labs.

Tesla to boost overall production as Model 3 demand skyrockets

Published Jul 11th, 2019 9:26AM EDT
Tesla Model 3
Image: TierneyMJ/Shutterstock

One of the key metrics investors tend to hone in on when it comes to Tesla involves the company’s ability to manufacture the Model 3 at scale. And with good reason, the Model 3 represents Tesla’s attempt to become more of a mainstream car company, and that simply isn’t realistic if Tesla can’t ramp up supply to meet demand. Sure, the Model S is a fine luxury sedan, but the Model 3 is a car that was designed for the masses.

All that said, it’s certainly no secret that Model 3 production got off to something of a shaky start, with Elon Musk conceding that too much of the assembly line was automated early on.

“We did go too far on the automation front and automated some pretty silly things,” Musk said during an earnings conference call last year.

In stark contrast, Tesla today seems to finally have gotten a handle on Model 3 production. Indeed, strong Model 3 demand and improved efficiency across the production line helped Tesla this past quarter set a new all-time record for deliveries. Specifically, Tesla during the June quarter delivered 77,550 Model 3 units.

In light of all that, a new report from Bloomberg relays that Tesla is preparing to boost production at its Fremont plant in California.

The electric-car maker is “making preparations” to raise output at its factory in Fremont, California, Jerome Guillen, Tesla’s automotive president, wrote Tuesday. “While we can’t be too specific in this email, I know you will be delighted with the upcoming developments.”

Guillen’s email also added that Tesla this past quarter “hit new records in all production lines for output and efficiency.”

Notably, there’s no indication as to which vehicle or vehicles will benefit from the increased production. While it’s possible Guillen is talking about the Model 3, it’s just as plausible that he’s talking about the Model S or even the Model Y. Indeed, Tesla has indicated that if all goes according to plan, the Model Y — which is a crossover version of the Model 3 — should be available by early 2020.

Yoni Heisler Contributing Writer

Yoni Heisler has been writing about Apple and the tech industry at large with over 15 years of experience. A life long expert Mac user and Apple expert, his writing has appeared in Edible Apple, Network World, MacLife, Macworld UK, and TUAW.

When not analyzing the latest happenings with Apple, Yoni enjoys catching Improv shows in Chicago, playing soccer, and cultivating new TV show addictions.

More Tech