The company pointed to "progress" in capacity and said that its "Model 3 production rate will climb rapidly throughout Q2." It expects to hit a weekly production rate of 5,000 Model 3 units within three months. Tesla released its data against a troubling backdrop of bad news. Just last week, Tesla announced that it was recalling 123,000 Model S sedans over problems with a power steering component on cars built before April 2016. Also last week, the company released information about a fatal Model X crash in March. The company said that its autopilot semi-autonomous driving system was engaged at the time of the crash and the driver failed to react to a possible collision. Tesla argued that the unnamed male driver's crash was made worse by a crash guard along the highway. The combination of bad news, coupled with production delays, was enough to send Tesla shares tumbling last week and founder and CEO Elon Musk scrambling to address his company's woes.