Elon Musk owned electric car manufacturing firm, Tesla’s Model 3 has off late been in news for its production issues and lagging behind the committed schedule. Citing company issues, CNBC had reported that Tesla’s problems with battery production at its Gigafactory in Nevada are worse that Tesla had acknowledged. The report further added Tesla needing to make some batteries by hand and borrowing employees from one of its suppliers to help with manual assembly.
Resulting in this, Tesla shares closed down 2.4% and rose 1.6 percent in extended trading after the Tesla confirmed it had no further production setbacks.
In an e-mailed statement, Tesla said, “To be absolutely clear, we are on track with the previous projections for achieving increased Model 3 production rates that we provided earlier this month.”
“As has been well documented, until we reach full production, by definition some elements of the production process will be more manual,” the email added.
Earlier this month, Tesla once again delayed production target for the Model 3 sedan for the second time, disappointing investors even as it claimed: “major progress” overcoming manufacturing challenges that have hampered the vehicle’s rollout.
Currently, about 2500 Tesla Model 3s are being manufactured every week, half the number it had earlier promised. It expects to reach its goal of 5,000 vehicles per week by the end of the second quarter.
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To ensure this, the board of Tesla had confirmed that Elon Musk could earn as much as $55.8 billion in Tesla Inc stock and own more than a quarter of the electric car company in the next decade if he hits all targets of a bold new pay plan.
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The unexpected compensation arrangement – announced in the middle of the night in California – involves no salary or cash bonus but sets up rewards for Musk multiplying Tesla’s market value as much as ten-fold to $650 billion over the next 10 years.That ambitious target implies Tesla stock will grow by 1,000 percent over a decade or about 27 percent per year
