The Model 3, priced starting at $35,000 (roughly Rs. 22.51 lakhs), is key to Tesla's effort to becoming a mass producer and reshaping the automotive market. "People want Tesla products, but Tesla can't stop spending more money than it has".
Compensation for Musk, 46, will be based on a new 10-year performance stock award that could give him billions worth of company shares, or nothing at all if the company fails to meet its targets. For example, he said, the company has almost completed an automated battery module assembly line which will speed production at its Nevada battery factory. The company hopes to increase its production rate to 2,500 per week by the end of the first quarter and 5,000 per week by the end of the second quarter, so it has plenty of work to do to reach those goals.
Musk said Tesla has learned some valuable lessons about production and is steadily resolving problems with the Model 3.
Tesla CEO Elon Musk says Model 3 production bottlenecks are being caused by the battery module assembly line at the company's Gigafactory in Nevada.
Speaking to analysts on Wednesday night, Musk said that 2017 had been "on balance, a phenomenal year", with the launch of the company's first mass production vehicle, the Model 3; the unveiling of the Tesla Semi; and the installation of the world's biggest lithium-ion battery right here in Australia.
Musk said he is "cautiously optimistic" that the company will be profitable before the end of 2018, revealing that Tesla is still expecting to produce one million vehicles per year by 2020.