Musk also revealed that the company produced 2,000 of its more expensive Model S and Model X cars, bringing the total number of cars produced to 7,000 in one week and triggering celebrations from workers across the company. Tesla also expects to produce 6,000 Model 3 sedans a week "next month".
"The level of dedication and creativity was mind-blowing".
The Los Angeles Times writes, "Optimism about the Model 3 transforming Tesla into a much bigger carmaker that sells to the mass auto market sent the company's market capitalization past Ford Motor Co. and General Motors Co. for the first time previous year". However, the lower-priced model is considered crucial to ensuring Tesla becomes a mass market auto company competing with Ford and VW, rather than a more niche electric vehicle company competing with high-end manufacturers such as Porsche.
No standard automotive solution could be built in time, so we created a new solution. At the same time Tesla reached new heights with Model 3 production, it also built 7000 Model S and Model X vehicles in a week.
The company had originally meant to hit the target by December previous year, but this was then pushed back to the end of the first quarter of 2018 and then delayed again to the end of the second quarter.More news: Nissan GT-R50 by Italdesign prototype marks 50 years of GT-R
The key will be whether Tesla can keep this pace, said Dave Sullivan, manager of product analysis for AutoPacific Inc. " 3 Tesla Team 3". "Consistently producing 5,000 per week with outstanding quality is another". The company is known for temporary periods of quick production, but has yet to prove to investors that its short manufacturing bursts are sustainable.
"Now that Tesla has achieved the 5,000 mark [for the Model 3], it needs to do so on a steady, routine basis and with excellent quality", Michelle Krebs, an analyst with car-shopping website Autotrader, was quoted by The Los Angeles Times as saying.
The remaining net Model 3 reservations count at the end of Q2 still stood at roughly 420,000 even though we have now delivered 28,386 Model 3 vehicles to date. Bloomberg reports that the standard battery version of the vehicle, starting at $US35,000, still isn't available in the design studio, so customers can either order a higher-priced version, continue to wait, or cancel their order.
Despite touting the Model 3 as a $35,000 vehicle, Tesla has yet to begin building that basic version and instead is now building a higher-priced version.
The company's shares could hit $400, Damodaran said, but Musk would need to increase revenues from $12.5bn to $120bn in the next decade, invest more efficiently than the rest of the sector and meet debt commitments.