Arthur J. Villasanta – Fourth Estate Contributor
Hawthorne, CA, United States (4E) – Tesla, Inc. manufactured more than 80,000 electric vehicles (EVs) during the third quarter, a record production number that relegates to the level of a bad dream the horrific productions problems faced by the compny since the start of the year.
Industry pundits said this level of production is unprecedented for Tesla, which now has to contend with delivering this massive output to impatient buyers. Of this impressive total, more than are 53,000 Model 3 all-electric, four-door sedans. The number of Model 3’s produced is a huge 187% increase over the second quarter.
Overall, Tesla manufactured almost as many cars in the third quarter as it did during the first and second quarters combined. The massive production boost is a huge step in Tesla’s aim to become profitable at last.
Model 3 production was a wild ride with low lows and high highs and Tesla clearly didn’t achieve its goal of 6,000 units per week. Despite this, 187% increase quarter-over-quarter is quite incredible, according to analysts.
Other pundits predict Tesla might have produced up to 85,000 units, but the true number will be known when Tesla reveals the figures on Monday afternoon.
The production record came about despite mass firings in June. Tesla took drastic action to stem its hemorrhaging billions of dollars by laying-off thousands of workers, but apparently not many of those on the production line of its troubled Tesla 3.
Those laid off accounted for nine percent of Tesla’s workforce, said CEO Elon Musk in a memo to staff. Tesla had 37,500 employees at the end of 2017. Nine percent of this total amounts to some 3,400 employees. Tesla fired hundreds of workers in the fall of 2017.
“We are a small company in one of the toughest and most competitive industries on Earth,” wrote Musk. He argued that cost cutting was necessary to turn Tesla into a sustainably profitable company.
The layoffs are “almost entirely” in salaried positions and won’t impact Tesla’s efforts to increase Model 3 production, said Musk. The job cuts should reduce Tesla’s costs, allowing the company to reach profitability more easily.
Article – All Rights Reserved.
Provided by FeedSyndicate