Tesla Inc. (TSLA), the green car maker aiming to meet ramped up production goals for the Model 3 sedan by the end of June, made around 30,000 in 2018.
Business Insider, citing internal documents, reported that in June it produced around 6,000 of the Model 3 cars. The company has a stated goal to produce 5,000 Model 3s per week by the end of this month.
Tesla’s Stated Goal Deadline Days Away
Its efforts to reach that goal have been mired in challenges and delays that have hurt the stock and shaken the confidence in the company and its outspoken leader Elon Musk. The company built a new assembly outside of its Tesla Fremont plant to pick up the pace of production but according to Business Insider, less than 100 vehicles have been produced there. What’s more, it could take time before the plant can help Tesla reach its 5,000 a week goal. In the first quarter of 2018 Tesla was able to produce 9,833 Model 3 vehicles and delivered 8,180, noted the report. (See more: Tesla Employee Accused of "Extensive and Damaging" Sabotage.)
Tesla To Lay Off 9% Of Workforce
With Tesla struggling to reach its production goals, the company announced earlier this month that it will cut about 9% of its workforce as it engages in a reorganization that is aimed at flattening the management structure. Tesla currently has approximately 46,000 employees, including the 8,000 positions the company added since the start of this year. It is now set to shed around 4,100 jobs. The reductions will mostly impact salaried positions, while the hourly factory jobs are expected to remain unaffected by the reorganization. "To be clear, Tesla will still continue to hire outstanding talent in critical roles as we move forward and there is still a significant need for additional production personnel," Musk said in a letter to employees when announcing the impending layoffs. "I also want to emphasize that we are making this hard decision now so that we never have to do this again." (See more: Tesla Breaks Out as Elon Musk Taunts Short Sellers.)
Amid the production problems some on Wall Street, including Jefferies, have warned that Tesla could face a cash crunch resulting in the need to raise between $2.5 billion and $3 billion. Musk said in April that the car company will be cash flow positive in the third and fourth quarters of 2018. As a result, he said there is no reason to raise more capital.