Tesla's battery production for the Model 3 is the company's real obstacle to putting cars on the road, not Model 3 itself, Oppenheimer analyst Colin Rusch said on CNBC's "Power Lunch"
Tesla had numerous problems as it ramped up the production of the Model 3 and repeatedly missed its own production targets. CNBC has previously reported battery production issues at Gigafactory near Reno, Nevada
On Tuesday, an e-mail to CEO Elon Musk was sent to the press saying Tesla will try increase production capacity to the point where the factory can produce up to 6,000 cars by the end of June. From there, the company will work to achieve a steady production rate of 6,000 cars a week.
But given his story, Tesla will have to find a production partner on the assembly line to make that kind of numbers, Kelley Blue The editor-in-chief of the book, Matt DeLorenzo, told CNBC
"They have to work together because they have this stop. Did start-thing, "he said. "Now the batteries can have an impact, but if they reach a running rate of 6,000, they'll need a lot more people and better management to get that kind of throughput," he said.
DeLorenzo referred to a report from Bloomberg about an email from executives calling on volunteers from Tesla employees to work on the Model 3 production line to reach the quarterly production target of 2,500 cars a week and "the haters to prove that they are wrong. "
Tesla's goal missed the target before and produced just over 2,000 vehicles in the first quarter of the model 3.