As I reported yesterday, last week was a roller coaster week for Tesla, in which the company registered nearly 3,000 new VINs for its Model 3, but near the end of the week another more positive story was emerging.
Elon Musk reassured shareholders during Tesla's 1st Quarter report that the company is able to keep production up for the Model 3 and actually increased the rate to 2,000 cars per week in the last week of March.
Tesla may not be out of the woods yet, but the car maker took two very significant steps this week that will push the company forward.
Fox Business spoke to Loup Ventures Managing Partner Gene Munster who spoke on the outlook for Tesla and detailed the two steps that the company took this week.
Tesla's Model 3 Production and Cash
Munster says the Tesla story will be a wild ride over the next few years. For example, the TSLA stock was down about 35 percent the past month and has rebounded 25 percent just over the past few days. He says that wild ride will continue because Tesla is not out of the woods yet. But the company did take two important steps, which are as follows.
First, the production number of Model 3s doubled over the last three months and Tesla is now producing about 2,000 Model 3 vehicles per week. Tesla plans to double production again over the next three months to 4,000 cars per week. The production rate will continue to be increased until Tesla reaches their ultimate goal of 10,000 vehicles per week. When Tesla reaches this next goal of 4,000 cars per week, they will be considered as 40% through the woods towards their target rate.
The second step forward is the cash piece. Investors have been concerned that Tesla may run out of cash and, "That's not going to be the case, at least in 2018," says Munster in the video interview, which you can watch below. In other words, Tesla appears secure regarding cash through the remainder of this year.
Tesla May Emerge as a Brilliant Tech EV Battery Company
Munster believes that once Tesla handles the above-mentioned two steps and is back to its mission, which is to accelerate the globe's adoption of renewable energy, it will emerge as a brilliant technology, electric car and battery company.
The car piece is one part, but the reason why he mentions Tesla's mission statement is because that really sums up this massive tech wave that we will experience over the next decade around renewable energy, batteries, electrification of cars and autonomous driving. And Tesla plays a role in all four of these fields.
Watch The Video Interview Here
How long do you think Tesla's wild ride will continue? When will it emerge stronger through the woods and reach 4,000 Model 3 productions per week? Please, share your comments in the commenting section below for discussion.