>> Tesla is now able to roll out cars from the factory line fast enough to potentially put it on the path to profitability. But investors question whether it can keep the pace. On Sunday it said it hit a milestone of producing over 5,000 Model 3 cars last week, a weekly target that was promised and missed several times before.
Wrapping up production of this car is key to Tesla's future profitability, as the Model 3 is the company's first mass-market product. The news initially helped the shares rise over 6% Monday morning. But that quickly gave way to losses as investors questioned whether Tesla can keep the production volume steady, says Reuters' Alexandria Sage.
>> Workers who I've spoken to have told me that Tesla has engaged in what are called burst builds. These are bursts of production where all hands are on deck. The line is running quickly, workers are diverted from other tasks, other areas on the assembly line to help out on the Model 3.
So it's basically akin to running a sprint versus running ten miles. You have to pace yourself, and it's not necessarily sustainable. So it's yet to be seen how consistently Tesla can meet this target.>> Already by late Monday, Tesla said some of its Model 3 production would be on break as part of the 4th of July holiday, with production resuming on Thursday.
Tesla CEO Elon Musk made a big push to meet the production target. Flying in assembly lines from Europe and building a tent in the Fremont factory to quickly build up production capacity. But even that may not be fast enough for Tesla fans who were lined up to reserve the Model 3 over two years ago.
There are around 420,000 reservations outstanding for the car as of the end of the first quarter. And so far Tesla has only delivered around 28,000 of them to customers.