Tesla plans to churn out 10,000 Model 3 vehicles every week

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Tesla has revealed that it plans to start producing 10,000 Model 3 vehicles every week. In an SEC filing, the firm stated that it plans to reach the figure by expanding its manufacturing capabilities outside of the U.S., namely in China where it is developing plans to begin building 3,000 Model 3 vehicles per week for the local market.

The firm admitted that the timeframe to begin manufacturing at Gigafactory 3 was subject “to a number of uncertainties, including regulatory approval, supply chain constraints, and the pace of bringing the factory online.” Tesla will bring the factory online progressively and support it with Gigafactory 1 but it will eventually support itself.

With the on-going trade dispute between China and the U.S., the firm said that local manufacturing will be critical to its expansion and existing level of sales in China, which it acknowledged as being the largest market for electric vehicles. It also claimed that tariffs, imposed by the Chinese government, had “negatively impacted” the sales of its Model S and Model X vehicles in the country.

Topping off the segment in its filing, the firm said that if it's not able to resolve the issue by establishing manufacturing activities in the country and other jurisdictions or ramp up production capabilities at Gigafactory 1, its business and prospects could be harmed.

With a goal of producing 10,000 Model 3 vehicles every week, with Gigafactory 3 figures factored in, the firm still needs to up its production rates in the U.S. by another 1,000. In August, the firm stated that it was aiming to build 6,000 Model 3 vehicles each week by the end of August.

Source: SEC via: Reuters

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