Musk said the Model 3 sedan was the third product on which Tesla gambled its existence, after its first vehicle, the Roadster sports auto, and the Model S sedan, which represented a sizable increase in annual production.
The $7,500 federal tax credit for electric vehicles is set to start phasing out for the Model S, Model X and Model 3 after Dec.31, according to the company's website. This was followed by an encouraging trend displayed by Bloomberg's Model 3 production tracker, which now forecasts that Tesla would be able to sustain its "burst" production rate of 5,000 vehicles per week for the next three weeks.
Musk had hoped to make vehicle production faster and less expensive by significantly increasing the amount of automation Tesla used in its factories.
Musk also told Bloomberg that at one point he wore the same clothes for five consecutive days, and he compared circumstances at Tesla with those at General Motors, where he said executives used a designated elevator to avoid contact with other employees. But the company struggled to increase automation and production capacity at the same time after launching its Model 3 sedan. Tesla told Bloomberg that it was not aware of such instructions and that the plumbing issue was quickly resolved.
"We thought it would be good, but it was not good".
This recent filing stands as yet another sign that Tesla is well on its way to sustaining its production rate of 5,000 Model 3 per week this third quarter. The Model 3 was created to be Tesla's first mass-market vehicle, meant to broaden the company's customer base beyond the luxury segment and increase the rate of electric-vehicle adoption.
With more than 400,000 customers holding deposits on the Tesla Model 3, many of those customers will likely not receive any federal tax credit.
On July 2, the company said it made 5,031 Model 3s during the final week of June and 28,578 during the second quarter, more than it had made in the prior three quarters combined.