It’s no secret that Tesla has struggled significantly this year to meet the demand for its new Model 3. It would seem, though that the company is turning things around rather quickly. The electric carmaker has profitability set as its main goal, and if things continue on the current projections, it seems like the Elon Musk-run enterprise has set itself up for success. Recently, the company has hit some production goals, and thousands of Model 3s are being delivered to customers. While there's still a lot of work to be done, things are looking up for Tesla.
A Serious Ramp Up Could Lead to Profitability
Tesla plans to be churning out 6,000 Model 3’s per week by the end of August, which should go a long way towards satisfying demand. The electric car company was able to make 53,399 cars in the second quarter of the year and plans to make up to 55,000 in the third quarter.
To hit that goal, the company will have to produce 4,200 units per week. During July, Tesla said it achieved production goals of around 5,000 models per week, so it seems the 55,000 in the third quarter is completely doable.
In the end, Tesla wants to make around 10,000 cars per week. While that may still be several months off, the company said it wants to get there as fast as possible. This should go a long way towards the company’s goal of being profitable in the next two quarters.
The Model 3 Outsold Competitors in July
While Tesla still has a lot of work to do to ramp up its Model 3 production, it would seem that the car is certainly doing well in terms of sales. The Model 3, according to Left Lane News, accounted for 52 percent of the midsize premium sedan market in the U.S. It outperformed its European, American, and Japanese counterparts in terms of sales.
Another interesting thing to note is that Tesla seems to be pulling buyers from all areas of the market. By looking at the types of trade-in vehicles the company is getting, Tesla said it is pulling buyers from both the premium and non-premium markets as well as a variety of vehicle types.
“The popularity of Model 3 is a true testament to the product,” Tesla told investors in a letter. The company also said that it expects demand to increase once the company is able to offer leases and less expensive versions of the Model 3. While Tesla isn’t totally out of hot water, it seems to be on the right track at the moment.