Elon Musk’s Tesla made more than 5000 model 3s within a week. But how risky it? Tesla made 5034 model 3s just within 7 days. The electric car giant met its goal. The tented assembly line helped musk to stay with the schedule. Nonetheless, it might go against the company.
Breaking the Wall Street Journal’s forecasting, the Tesla team made 7000 cars in total within just 7 days. Among them, 5034 cars were Tesla Model 3S. According to a Business Insider report, George Galliers, an analyst at Evercore ISI, said in a note to clients out Tuesday that Tesla’s extra assembly line- constructed in a tent next to its main Fremont, California factory and known by the company as GA4- could be a long-term risk to Tesla’s reputation.
“We understand that Tesla viewed GA4 as an economic way to accelerate production and delivery of Model 3, thereby resulting in incremental revenues and operating leverage on those parts of the production process that precede General Assembly,” Galliers said.
The letter also contains, “From a business perspective, we see sense in this. However, we also see merit in the counterargument that, if cash is not an immediate concern and GA3 is close to 5k a week today, the company should have waited rather than incur incremental capex to erect what appears to be a fairly primitive, and potentially temporary, facility. A facility which also has the potential to damage Tesla’s reputation as an innovative and advanced manufacturer, in the eyes of the consumer.”
So, will Elon Musk be able to keep his promise? Let’s wait and see.