The Model 3 is a supremely important product for the future of Tesla. It’s what CEO Elon Musk says will help the company get out of the red, and it could also be the first widely-adopted all-electric car. And on the eve of one of the most important deadlines in the company’s 15-year history, the company is still figuring out the best way to build it.
Today marks the end of the second financial quarter of 2018, and it’s also the deadline that Musk set for Tesla to make Model 3s at a rate of 5,000 per week. Tesla needs to reach this rate of production so that it stops losing money on every Model 3 it makes. Once it reaches this rate, the company can climb towards the eventual goal of bringing in a 25 percent margin on each of the sedans.