Despite a pretty good rise in deliveries in their third quarter, Tesla is pretty behind on their planned ramp-up of the new Model 3 mass-market sedan. The deliveries for the Model S and X were in the tens of thousands in the third quarter of this year, a 17.7 percent increase from the second, but Model 3 deliveries are suffering due to “production bottlenecks,” putting the company in a tough spot.
In July of this year, Tesla began production on their Model 3, but only managed to produce 260 during that quarter, delivering only 220. The car starts at $35,000, just half the price of the Model S. While they seem to be facing issue with production now, the company hopes to “achieve a rate of 5,000 Model 3 vehicles per week by the end of 2017.” They plant to double this rate by sometime next year, ultimately ending up with an annual production rate in excess of 500,000 vehicles.
Tesla issued a statement saying “It is important to emphasize that there are no fundamental issues with the Model 3 production or supply chain… We understand what needs to be fixed, and we are confident of addressing the manufacturing bottleneck issues in the near term.” They believe they’re on track to deliver around 100,000 S and X models this year, but because some systems at their Fremont,
In after-market trading, Tesla’s shares fell more than 1 percent down to $337.84. The automaker doesn’t seem too concerned about that, as they seem confident in their production numbers going forward. If they’re able to meet their goals on production and deliveries, they could be in truly great standing once again.