Tesla Inc’s (NASDAQ:TSLA) new production goal is 6,000 Model 3 cars per week by the end of June, according to a report by Electrek, an auto news website.
In a letter to employees, CEO Elon Musk said that by producing 6,000 electric cars per week, the company would be able to reach its goal of 5,000 cars per week while allowing for a margin of error.
The electric car company projected in January that it would produce 2,500 Model 3s per week by the end of 2018. However, a report by Jalopnik revealed that it’s only producing around 2,000 per week.
Musk blamed the discrepancy on “excessive automation.”
READ: Tesla halts production of Model 3 to iron out issues
Racing to meet the production goal, Musk took charge of the production line as of April, claiming that he is up all night and sleeps on the factory floor.
Tesla announced on Tuesday that it was halting production to address the issues slowing down Model 3 production. The company later announced that the California factory will be assembling the cars on a 24/7 schedule.
READ: Goldman turns bearish on Tesla, sees slump ahead; Elon Musk pushes back in Tweet
While Tesla has been in the news for myriad issues lately, the factor that matters is how the demand for the Model 3 is affected, according to KeyBanc analyst Brad Erickson in a note obtained by TheFly.com.
Contrary to the bearish sentiment that demand has already taken a hit, Erickson reiterated a Sector Weight rating on Tesla shares.
Morgan Stanley analysts referred to Tesla as the “ultimate high-risk name in autos”, estimating that Model 3 production won’t reach 5,000 cars per week until either the third or fourth quarter, in a note shared by TheFly.com.
Analyst Adam Jones reaffirmed an Equal Weight rating on Tesla shares and lowered his price target on the stock to US$376 from US$379.
Shares of Tesla were up 5 points to US$293 in pre-market trading on Wednesday.