Tesla’s struggles to manufacture its flagship Model 3 electric sedan reached a boiling point last week, prompting CEO Elon Musk to take direct control of the division producing the vehicles, according to two people briefed on the matter.

The move came after Tesla failed to hit its goal of making about 500 Model 3 sedans per day, or 2,500 per week, by the end of March. Mr. Musk appears to have pushed aside the company’s senior vice president of engineering, Doug Field, who had been overseeing manufacturing in recent months. Until the move by Mr. Musk, Mr. Field had been consolidating power since joining Tesla from Apple in 2013. Mr. Musk had given Mr. Field several chances to raise output, but the company has repeatedly missed its Model 3 production targets over the past year, including after Mr. Field took over manufacturing.