Tesla produced 34,494 vehicles in the first quarter, a 40% increase from the fourth quarter of 2017, even though it missed its Model 3 production goals.
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The company’s Model 3 vehicle has been dealt numerous production delays, and this has affected Tesla’s shares. The Model 3 is a more affordable vehicle than the company's other models. While the latest short fall of production could have been seen as a negative, investors are cheering not only the company’s overall production growth but also Tesla’s report that it expects to finally reach its output goal, soon.
The company built 2,020 Model 3 sedans in the last seven days of March, short of its 2,500 per week goal for the end of March, but the company sees output climbing rapidly through the second quarter.
Tesla said that it was able to double its weekly Model 3 production rate during the quarter by addressing bottlenecks, which included several short factory shutdowns to upgrade equipment. The company added that the rate of growth for Model 3 production continues and that it "will exceed even that of Ford and The Model T. The company expects to achieve output of 5,000 Model 3 vehicles per week in about three months.
Also, even though Elon Musk recently tweeted a joke about Tesla filing for bankruptcy, the company announced on Tuesday that it would not require an equity or debt increase this year, apart from existing credit lines.
Tesla’s shares were climbing on the news.