Elon Musk Warns of 'Manufacturing Hell' for Model 3

Screengrab via The SpaceX Fan Club  YouTube

The first 30 production ready versions of the auto were delivered at the event to Musk himself and 29 other Tesla employees.

The new "every man" Model 3 Tesla revealed this week for $35,000 may just be technicality, with even the most basic options pushing the price past $40,000.

The confession came in an exchange on Twitter, in the wake of the release of the Tesla Model 3 last Friday. If Tesla hits its planned production of 500,000 cars a year from the factory, analysts predict that it will outsell BMW, Mercedes and Lexus in the US.

But the handover event came as nearly an anticlimax for Wall Street, and TSLA shares started tumbling after Musk told journalists ahead of the ceremony, "We're going to go through at least six months of manufacturing hell".

Production delays and quality issues marred the launches of Tesla's Model S and Model X vehicles, and the company blamed production problems for a shortfall during the second quarter of this year. An analyst warned that a wave of optimism toward Tesla could wane once investors begin to judge the company on product demand, growth and profit.

The Tesla Model 3 is minimalistic, but complete. Have you ever seen an ad for the Model 3?


Abuelsamid said even if it doesn't meet its ambitious targets, Tesla has done more than anyone to promote electric vehicles. "We are doing what we can to have the future be as good as possible, to be inspired by what is likely to happen and to look forward to the next day", he said in a recent speech to the National Governor's Association.

But Musk says Tesla worked hard to make the Model 3 simpler and cheaper to make than Tesla's previous vehicles. The lithium ion battery pack delivers 350 km of range on full charge, while the vehicle has traditional Tesla acceleration - 100 km/h takes just 5.6 seconds, with a top speed of 210 km/h. A study released in May by the labor advocacy group Worksafe claimed that the automaker has experienced workplace injuries at a 31 percent higher rate than that of the USA auto industry overall.

Workers also complained that there is no clear policy for how workers might advance at Tesla.

Until now, Tesla has operated as a niche producer of luxury electric vehicles, with a charismatic, showman CEO who regularly interacts with fans on his Twitter account.

Tesla will also be using the Model 3 as an opportunity to scale up its manufacturing.

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