Tesla achieves Model 3 mass production target, but bankruptcy concerns remain

Not long ago, Musk said that Tesla had achieved its Model 3 mass production target, which boosted Tesla's stock.

Tesla will release its second-quarter earnings report early next month. Although Model 3 production has met targets, Tesla's net losses and negative free cash flow have significantly worsened.

Company management claims that Tesla's financial situation will improve as Model 3 deliveries increase.

Tesla produced a record 53,339 vehicles, a 55% increase from the previous quarter. Among them, Model 3 was 28,578. Tesla's Model 3 production increased exponentially in the quarter, and most of the vehicles were produced at the end of the quarter. Among them, 11,166 Model 3s could only be delivered to consumers in the third quarter.

Since Tesla reached its Model 3 production target, the Model 3 production progress remains worrying. The outside world generally doubts whether Tesla can maintain a high production volume.

After Tesla's assisted-driving system was first released in October 2015, the company has made significant improvements to Autopilot by providing regular software upgrade downloads.

This upgrade package has achieved significant improvements to the system, including driver-assisted steering, lane changing, the "hailing" function for vehicles entering and exiting tight spaces, and improved automatic emergency braking capabilities.

Musk initially promised to demonstrate a car capable of driving across the United States by the end of 2017, demonstrating the yet-to-be-released "full self-driving capability" feature of Autopilot. But Tesla's self-driving technology is gradually falling behind its peers.

Tesla's cash position is not promising. The company ended the first quarter with $2.7 billion in cash, but management plans to reinvest $2.3 billion in the second, third, and fourth quarters combined, despite negative free cash flow of $1.05 billion in the first quarter. Tesla does not expect to be cash flow positive until the third quarter.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.