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Tesla will start working 24/7 to crank out Model 3s

Tesla CEO Elon Musk vowed to manufacture Model 3 cars around the clock to finally meet the company's...

Posted: Apr 18, 2018 1:38 PM
Updated: Apr 18, 2018 1:38 PM

Tesla CEO Elon Musk vowed to manufacture Model 3 cars around the clock to finally meet the company's production target.

The 24/7 production pledge, which Musk emailed to employees Tuesday, came a day after Tesla temporarily suspended production of the mass-market sedan to work out kinks in its assembly line.

Musk set an ambitious production target of 6,000 Model 3s by the end of June. That's 20% more vehicles per month than he promised investors earlier this year.

Tesla has been under pressure to prove to critics and investors that it can increase production of the electric mass market car with a $35,000 starting price. It's also on the hook with about 500,000 customers who put down $1,000 deposits to buy the car. Some have been waiting a year to get their Model 3s.

But so far the automaker has fallen short of just about all of its production targets. It said when it started production of the Model 3 last summer that it would build 5,000 of the cars a week by the end 2017. But it ended the year building only 800 a week.

Tesla reset its production target again but it fell short of that goal as well. Through the end of March it has only built 12,500 Model 3s.

The automotive blog Jalopnik first published Musk's email on Tuesday and CNNMoney confirmed its authenticity.

The email says the company is shutting the assembly line for three to five days as it prepares to go to three shifts, seven days a week.

Related: Elon Musk's brash promise - Tesla will soon make money

Most US auto plants at established automakers only operate with two eight-hour shifts despite the large cost of robots and other equipment at auto assembly lines.

Supplying a plant with parts and keeping the equipment in peak operation is difficult when running the plant around the clock.

"There's diminishing returns when running 24/7," said Rebecca Lindland, executive analyst with Cox Automotive. "Best practice is two eight-hour shifts."

To add the extra shifts, Tesla is looking to hire about 400 workers a week for several weeks. The company had about 37,500 employees as of the end of last year.

Related: Analysis - Tesla should be held to a higher standard

Musk also vowed to rein in spending and give more scrutiny to supplier contracts. Outside experts, such as credit rating agency Moody's and Wall Street firm Jefferies, have said the company could face a cash crunch later this year if Tesla continues to miss its Model 3 production target. But Musk has insisted that the increased production of Model 3s will provide it with the cash it needs. He has denied the company will need to raise more cash, and promised profitability in the latter half of this year. His email said the company is on the verge of turning a profit.

"A fair criticism leveled at Tesla by outside critics is that you're not a real company unless you generate a profit, meaning simply that revenue exceeds costs," Musk wrote. "It didn't make sense to do that until reaching economies of scale, but now we are there."

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 314509

Reported Deaths: 7247
CountyCasesDeaths
DeSoto21626259
Hinds20359415
Harrison17934309
Rankin13634278
Jackson13447246
Madison10099217
Lee9980174
Jones8381163
Forrest7683152
Lauderdale7191241
Lowndes6401147
Lamar623086
Lafayette6200118
Washington5339134
Bolivar4802132
Oktibbeha462798
Panola4588107
Pearl River4512146
Marshall4443103
Warren4393121
Pontotoc420772
Monroe4113133
Union411076
Neshoba4031176
Lincoln3968110
Hancock379386
Leflore3497125
Sunflower336090
Tate334084
Pike3325105
Scott315973
Alcorn313368
Yazoo311669
Itawamba300477
Copiah297065
Coahoma295479
Simpson295288
Tippah288768
Adams286882
Prentiss279760
Marion269280
Leake268373
Wayne262641
Grenada261487
Covington259681
George248048
Newton246861
Winston227281
Tishomingo226967
Jasper221148
Attala214473
Chickasaw207857
Holmes189173
Clay185454
Stone182833
Tallahatchie178841
Clarke178080
Calhoun170832
Yalobusha164338
Smith162434
Walthall133945
Greene130633
Lawrence128624
Montgomery126942
Noxubee126734
Perry126338
Amite123142
Carroll121829
Webster114532
Jefferson Davis107133
Tunica105726
Claiborne102430
Benton99525
Humphreys96733
Kemper95828
Franklin83823
Quitman80916
Choctaw76418
Wilkinson67331
Jefferson65728
Sharkey50217
Issaquena1686
Unassigned00

Alabama Coronavirus Cases

Cases: 532895

Reported Deaths: 11001
CountyCasesDeaths
Jefferson771431528
Mobile41089808
Madison34837505
Tuscaloosa25810454
Montgomery24355588
Shelby23730249
Baldwin21191309
Lee15892171
Calhoun14522316
Morgan14324279
Etowah13861353
Marshall12250223
Houston10581281
Elmore10060205
Limestone9986151
Cullman9705194
St. Clair9702243
Lauderdale9441242
DeKalb8846187
Talladega8255176
Walker7246277
Autauga6938108
Jackson6815112
Blount6694137
Colbert6310134
Coffee5524119
Dale4850111
Russell443238
Chilton4308112
Franklin426282
Covington4136118
Tallapoosa4039152
Escambia393977
Chambers3578123
Dallas3557152
Clarke351161
Marion3130101
Pike311377
Lawrence300798
Winston275673
Bibb261564
Geneva251477
Marengo249664
Pickens234761
Barbour231756
Hale223277
Butler216469
Fayette212562
Henry189044
Cherokee184745
Randolph181742
Monroe178040
Washington167639
Macon159950
Clay156857
Crenshaw152757
Cleburne149141
Lamar142935
Lowndes139053
Wilcox127130
Bullock122841
Conecuh110629
Coosa107928
Perry107826
Sumter104832
Greene92534
Choctaw61124
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