Tesla Inc almost produced 5,000 Model 3 electric sedans in the last week of its second quarter, with the final vehicle rolling off the assembly line on Sunday morning, several hours after the midnight goal set by Chief Executive Elon Musk, two workers at the factory told Reuters. Tesla produced 1,913 Model S and Model X vehicles, it said in the filing. But the vast majority of those Model 3 vehicles were made in the second quarter of 2018. Model 3 production for the three month period hit 28,578 cars - more than Model S and Model X combined - a three-fold increase over Q1.
Shares of Tesla closed the formal trading day down 2.3 percent to $335.07 but regained some of that ground in after-market trades.
Moody's Investor Service downgraded Tesla's debt into junk territory back in March, warning that Tesla won't have cash to cover $3.7 billion for normal operations, capital expenses and debt that comes due early next year.
Tesla stock finished June with a 20% gain in share price, its best monthly performance in nearly four years, according to Bloomberg. The company also took the unprecedented step of setting up a new production line inside a tent on the campus of its Fremont factory, details of which Chief Executive Elon Musk tweeted last month.
"With Tesla, there are always these conveniently timed production announcements at the flawless hour for Wall Street", said Karl Brauer, executive publisher of the automotive research firm Kelley Blue Book.
Bottom line, "Stock likely to experience some relief on achieving 5k Model 3/week since if this pace can be repeated, Tesla should turn into a self- funding company".
Tesla announced in June that it was cutting nine percent of its workforce to enhance profitability, but said the move would not affect an ambitious production ramp-up of its Model 3 sedan. He says Musk doesn't manage for quarterly results, and believes Tesla can keep producing at the current rate. Wall Street investors, who have pushed the company's stock beyond $340 per share, are growing impatient with the losses. He even shipped an extra battery production line in from Germany, which Tesla put under a tent. This was confirmed by Tesla in a regulatory filing on Monday which claimed that the company produced 5,031 Model 3 cars in the final week of the quarter.
"I think we just became a real auto company.", Musk said.
Reaching the 5,000-unit target represents a doubling of weekly production since Tesla's first quarter production rate for the Model 3.
With Tesla attaining a pace of 7,000 Model 3, Model S, and Model X per week, however, Ford would be wise to not underestimate the upstart electric vehicle maker.
History is limited, given Model 3 production began only last summer.