Tesla Inc is on its way to construct 8,000 Model 3 cars on weekly basis even as it burns more money, Evercore analysts wrote in a note on Thursday, after their visit to the automaker’s California facility.
Tesla produced 5,031 Model 3 electric cars in the past seven days of the second quarter, the company stated in early July, meeting its long-elusive production target following several hiccups.
“Tesla seems well on the way to achieving a steady weekly production rate of 5 to 6k units weekly,” Evercore experts said after a two-day visit to the Tesla facility.
“In addition, the capex required and constraints that need to be overcome to reach 7 to 8k units weekly seem well within reach.”
The company is under pressure to prove it can boost the production of Model 3, its lowest-priced car, in middle of production challenges and cash burn, as it looks to become a mass-market automaker.
Evercore had previously forecast production of 123,000 Model 3s during the second half of the year, however the analysts said they may need to increase that by as much as 7 percent after the tour.
On other hand, Tesla CEO Elon Musk last week stated he wants to take the company private.
Tesla shares fell 0.6 percent at $336.41 in morning trade on the Nasdaq.