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Tesla Misses Model 3 Production Target

Tesla has missed their goal of producing 5,000 Model 3s a week.

According to The Vergethis shouldn't be surprising to anyone following the story of the Sedan's production as it's been plagued with issues since the start. Between rumors of factory safety, a labor investigation, and losing money rapidly, it seems as though the cutting-edge car company can't catch a break this year.

This production goal was necessary for the second quarter so that Tesla would stop losing money at an alarming rate. Only then could the company reach a 25 percent margin, thus generating some much-needed cash flow. The irony here is that the building the Model 3 is the reason why they're losing money in the first place.

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Via Consumer Reports

Profits are something that Tesla needs now more than ever. Their first quarter of 2018 ended with the company losing almost $785 million in revenues. after starting the year with $3.4 billion in the bank. This left them down $2.7 billion, but Musk and other Tesla higher-ups insisted that the company's profits would change for the better by the end of the next quarter. Whether that happens is still anyone's guess, though.

While Tesla' financial situation continues to grow into a bigger mess, they keep changing their newest car despite having only 30 000 Model 3s built. This is in sharp contrast to the 450 000 consumers who've already made reservations globally (and this doesn't include the North American reservations since Tesla refuses to disclose that information). Another issue that only helps to snowball every is quality control possibly becoming an issue because of these sudden changes- an issue that might not come to light until recalls have already begun. That'll only lead to class action lawsuits, angry customers, and even injuries or deaths that could've easily been prevented in the first place by Tesla.

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So if Musk wants Tesla to make a profit by the end of the second quarter, the company needs to hit all their goals sooner than later. While making changes to the Model 3 may bring some good, "too much of a good thing" could very well become a reality. With a history of less than perfect quality control, Tesla must be careful so that they build cool yet safe vehicles for their loyal customers.

NEXT: TESLA TO OFFER PREMIUM INTERNET INSIDE THEIR CARS

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