Let’s take the following three important goals:
1. To make the best quality and performing car in the luxury compact sports sedan market at a competitive price
2. To make a healthy 25% gross margin on the Model 3 at volume production
3. To reach volume production of 5000 cars/week quickly as possible
I would argue that ramping production to 5000 cars/week as quickly as possible is actually not the most important goal, but rather is the least important goal among the three.
The most important goal is to make the product the best in class. And I think Tesla has achieved this. In fact, the Model 3 is so stellar of a car, I think other manufacturers will be chasing the Model 3 for many years to come. The Model 3 is a pure dream to drive, and in almost all ways is a better car than it’s competitors (BMW 3 series, Audi A4, Lexus IS, etc).
Ultimately how good the car compared to its competition will determine demand, and demand will determine the volume that Tesla will ultimately be able to sell, which will grow revenue and profits for the company.