Musk: ‘Everybody will get his Model 3, but six to nine months later’
Elon Musk, founder and CEO of Tesla assured in a tweet that “Tesla will be profitable in the third and fourth quarter of this year”. In an interview with CBS he also said that everybody who pre-ordered a Model 3 will get it for sure, but six to nine months later.
Musk reacted on an article in the magazine Economist that predicted Tesla had to find 2,5 to 3 billion dollar this year to keep on going. Earlier this month he already denied the need to raise more money, saying the existing credit lines will do for this year and that production of the Model 3 would be at 5.000 units a week in three months.
In an interview with CBS This Morning co-host Gayle King last week Musk admitted that those predictions weren’t quite accurate in the past. “I need to figure out how to be better… Then we can be better at meeting goals”, he told King.
Too much new technology
Musk also admitted that some mistakes were made. “We put too much new technology into the Model 3 all at once. This should have been staged”, he said.
But also in the production process too much robots showed to slow down things instead of going faster. “We had this crazy, complex network of conveyor belts… And it was not working, so we got rid of the whole thing”, Musk told the TV host.
Day and night at the factory
Beginning of April Musk, realizing the production needed an overhaul, took over overseeing production himself ‘day and night’, as he even stayed at the Freemont factory sleeping on a couch in one of the meeting rooms.
“We were able to unlock some of the critical things that were holding us back from reaching 2.000 cars a week. But since then, we’ve continued to do 2.000 cars a week”, he said. In the next quarters Musk is convinced Model 3 output will increase three or four-fold.
Six to nine months waiting
Meanwhile there are still more than 400.000 people waiting for their Model 3 car to be delivered. Musk wouldn’t say how many people have cancelled their pre-order yet, but admitted there are “people who could no longer wait because they needed a car”.
“There shouldn’t be a question mark as to whether somebody’s going to get his car, it’s just, yes, you’ll definitely get your car.” Musk told the interviewer. “It’s only going to be six to nine months later than expected. It’s a six-to-nine-month time shift, that’s literally it, and three of those months have already passed.”