It's not purely about the production volume - remember, the Model 3 was billed as a $35,000 car and a lot of the M3's projected demand is predicated on that range of price. Wall Street analysts have been vocally skeptical that Tesla can produce cars profitably at that price point. Tesla needs to simultaneously dramatically slash costs and dramatically increase volume, while also presumably retooling their production lines on the fly to address the quality issues that have been in the headlines lately.