In April 2018, Teslareportedthat it had missed its first quarter production and delivery targets for the Model 3. The company produced 2,020 Model 3s in the final week of the first quarter, short of its goal of producing 2,500 Model 3 sedans weekly by the end of March.

To increase its Model 3 production rate, Tesla will run its Fremont, California, factory around the clock, according to a leaked e-mail that Elon Musk sent to employees. Adding employees, shifts and paying more overtime to workers will raise costs for Tesla, another challenge to the Model 3 margins.

Tesla advised shareholders in its earnings statement today that it will plan to halt production at its Fremont factory for a total of about 10 days this quarter in order to improve processes so it can achieve its Model 3 production goals. It has already shut down production for a brief period in April.

Tesla’s statement said that before that recent shutdown, it was able to produce 2,270 Model 3s in seven days, a new record for the company.

Source: Tech CNBC
Tesla promises profits in the second half of this year — if it can meet Model 3 production goals