Tesla aims to build 10,000 Model 3s per week by the end of 2019

The company has succeeded in improving production efficiency, reducing man-hours per vehicle by 20 percent in the last quarter.

As media attention focuses on Tesla's profitability and upcoming vehicles, the company is still continuing to refine Model 3 production and increase output volume.

Speaking to analysts following Tesla's Q4 earnings report, CEO Elon Musk said he estimates global Model 3 demand to reach 700,000 to 800,000 units per year in a strong economy.

The company is hoping to bump output to 10,000 units per week by the end of the year, enabling total 2019 production to reach 350,000 to 500,000 units. Musk says getting the Shanghai factory online is the "biggest driver" in getting to 500K+ per year. 

After Musk sent an email to workers asking for help improving production efficiency, the automaker has slashed its man-hours per vehicle by 20 percent for the Model 3 in the last quarter. The company must slash costs significantly to make a profit from the $35,000 base model, expected to be added to the lineup later this year.

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