Can the Tesla Model 3 Be Successful?

Can the Tesla Model 3 Be Successful?

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Elon Musk, CEO of Tesla, is revered for being a CEO that often takes big risks, makes promises, and bites off more than he can chew.

This method of creating a giant mess only to find all the troubles and challenges is something that doesn’t make a lot of sense to most of us, but it has been the way Tesla has done business since the Model S arrived. The difference this time is that more customers are waiting for their vehicle than ever before and patience is beginning to grow thin.

Reaching One Goal Doesn’t Guarantee Another

In the early part of June, Musk promised to increase the production of the Model 3 to 5,000 per week. As the calendar turned to July, the team was able to finally reach this goal, but it came at a cost that might not be sustainable. In order to reach this first goal, the company had to hire hundreds of new people, build an additional assembly and production facility in a tent in the parking lot, and push the employees to work for several weeks without a break in the action.

There’s no way this level of production can be sustained for the long haul, but Musk has already stated another goal and promises to increase production to 6,000 vehicles per week by the end of July. Prior to reaching this first goal, the largest number of vehicles that had been produced for the Model 3 was 3,000 in a month. Being able to produce at a rate of 6,000 a week through the month of July, or at least sustaining over 5,000 per week, will certainly get our attention, but we should be somewhat skeptical. Tesla has promised and faltered in the past and this new goal is a lofty one.

Will the Tesla Team Be Successful?

Whether or not Tesla can reach this next goal is actually arbitrary. The fact is, Elon Musk has met each challenge along the way for the vehicles that have been built and offered by Tesla. Whether it was trouble with the Falcon Wing doors on the Model X or the need to pull back the reins of the Autopilot system of the Model S, he’s found a way to overcome the challenges. With this in mind, we should have confidence the Tesla team will be able to eventually achieve the goals set out originally.

One challenge that we saw earlier in the year was an overdependence on the automation in the production process. Realizing this offered Elon Musk the chance to express how important people are to the production process and why they need to be relied upon more than the robots to get the job done. As we see the Tesla team work to offer more of the models of the Model 3 through production, we can feel good knowing the team will learn how to mass-produce a vehicle, which means the Model Y might not face as many challenges as the Model 3 has.

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