Elon Musk expressed confidence about Tesla achieving the next production goal for its crucial Model 3. Mike Blake / Reuters
Elon Musk expressed confidence about Tesla achieving the next production goal for its crucial Model 3. Mike Blake / Reuters

Musk says confident about Tesla achieving next production goal for Model 3



Elon Musk expressed confidence about Tesla achieving the next production goal for its crucial Model 3, predicting that manufacturing will become a strength for the electric-car maker over time.

The chief executive said it’s “quite likely” that Tesla will build 5,000 of the sedans a week by the end of this month. The money-losing car maker has said its forecasts for profit and cash generation in the second half of this year — which Mr Musk reaffirmed during Tesla’s annual meeting Tuesday — are dependent on reaching this target.

“It’s very difficult to become a mass-manufacturing car company,” Mr Musk, 46, said after shareholders voted down a measure that would have required an independent director replace him as chairman. “No one has succeeded in doing this in a very long time in the United States.”

Manufacturing has befuddled Tesla ever since Mr Musk predicted 11 months ago that “production hell” would be ahead for the first car the company was trying to make in high volumes. Missed targets for the Model 3 contributed to the company burning through more than $1 billion in three of the last four quarters. An activist investor group cited failures to meet goals with the sedan as one of the reasons shareholders should have opposed re-electing three directors to the board, though that campaign failed.

One of the reasons for Mr Musk’s assurance that Tesla is turning the corner on manufacturing is the addition of a third general assembly line that completes the process of putting together the Model 3. The company started building the third line about two weeks ago, and the initial cars are moving through “crazy fast”, he said.

“The biggest constraint on output is general assembly,” Mr Musk said. “We can probably get to 5,000 a week with the current two general assembly lines. But with the third one, I’m highly confident that we can exceed 5,000 units per week.”

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Shares of the Palo Alto, California company rose as much as 1.7 per cent in late trading after Mr Musk commented on the likelihood that Tesla will meet the target. The stock had dropped 6.5 per cent this year through Tuesday's close.

Tesla is also now turning its attention toward expanding its manufacturing capacity by adding another plant, which will produce cars, battery packs and powertrains in Shanghai. The company may announce more details about that factory as soon as next month, Mr Musk said, then reveal plans for another to be built somewhere in Europe toward the end of 2018.

The comments by Mr Musk followed shareholders’ votes to reappoint three directors who were up for election during the meeting: private equity investor Antonio Gracias, Twenty-First Century Fox chief executive James Murdoch and food industry entrepreneur Kimbal Musk, Elon’s brother.

Investors also defeated a proposal to require that the chairman be an independent director, according to Todd Maron, Tesla’s general counsel, who said the company will release voting results in a regulatory filing within four business days.

The all-wheel drive version of the Model 3 will come out next month, Mr Musk said. The shorter-range battery version of the car that starts at $35,000 will start to arrive late this year, though the company may not reach volume production of that iteration until the first quarter of 2019.

Tesla then plans to unveil the Model Y crossover in March. That will go into production in the first half of 2020, along with the Semi truck and Roadster models, Mr Musk said.

Mr Musk still thinks manufacturing will become a strength for the company in the long term, though he acknowledged this was a counterintuitive prediction after Tesla’s trying experiences over the last year.

“It’s like, I will tell you, the most excruciating, hellish several months I’ve maybe ever had — and a lot of other people at Tesla,” Mr Musk said during the meeting, before inviting several of his top deputies to share the stage.

“But I think we’re getting there.”

THE SPECS

      

 

Engine: 1.5-litre

 

Transmission: 6-speed automatic

 

Power: 110 horsepower 

 

Torque: 147Nm 

 

Price: From Dh59,700 

 

On sale: now  

 
TEACHERS' PAY - WHAT YOU NEED TO KNOW

Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:

- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools

- average salary across curriculums and skill levels is about Dh10,000, recruiters say

- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance

- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs

- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills

- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month

- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues

THREE
%3Cp%3EDirector%3A%20Nayla%20Al%20Khaja%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Jefferson%20Hall%2C%20Faten%20Ahmed%2C%20Noura%20Alabed%2C%20Saud%20Alzarooni%3C%2Fp%3E%0A%3Cp%3ERating%3A%203.5%2F5%3C%2Fp%3E%0A
German intelligence warnings
  • 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
  • 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250 

Source: Federal Office for the Protection of the Constitution

COMPANY%20PROFILE%20
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3EAlmouneer%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202017%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Dr%20Noha%20Khater%20and%20Rania%20Kadry%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EEgypt%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%20%3C%2Fstrong%3E120%3Cbr%3E%3Cstrong%3EInvestment%3A%20%3C%2Fstrong%3EBootstrapped%2C%20with%20support%20from%20Insead%20and%20Egyptian%20government%2C%20seed%20round%20of%20%3Cbr%3E%243.6%20million%20led%20by%20Global%20Ventures%3Cbr%3E%3C%2Fp%3E%0A
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.

When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.

How to get there: Emirates currently flies from Dubai to Orlando five times a week.
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding