Tesla Deliveries Hit Record Quarter But No Thanks to the Model 3
04 Октября 2017, 12:31 | Melanie Burgess
Tesla Model 3 Production Is 84% Lower Than What Elon Musk Promised
That said, while the Model 3 production has not gone up to snuff, existing manufacture of Tesla's previous models did deliver in numbers. No sooner had the news come out that shares of Tesla went down by 1.5% in after-hours trading.
Tesla says this low rate is due to "production bottlenecks", attributing the issues to delays in activating a number of its manufacturing subsystems in its California auto plant and Nevada Gigafactory, which are normally "able to operate at high rate".
Ramping up production of its new Model 3, has been more challenging than Tesla expected. Further, the EV maker said that it is aware of what needs to be fixed, and are confident of resolving the issues in the near-term.
A maverick startup company founder, Elon Musk has been in the habit of making grand promises for what his various outfits - Tesla, SpaceX and Hyperloop among them - can do in the future. A slow ramp-up invited criticism from investors, and in response Tesla CEO ElonMusk said the company was focusing on building the "machine that builds the machine", that is, automating the production process to improve deliveries. The Model 3 manufacturing ramp up will be incredibly hard even if Tesla hits all of its production goals. It began its production of Model 3 during July that starts at a price of $35,000, which is half the Model S starting price.
It delivered 26,170 vehicles in Q3 which included 14,065 Model S cars and 11,864 Model X cars.
Model 3. Image source: Tesla. The company knows it won't be easy, as Musk alluded to the upcoming "manufacturing hell" at the Model 3 launch this summer.
Tesla struggled to produce its cheapest model shortly after the vehicle debuted, setting back Chief Executive Officer Elon Musk's mission to reach mainstream consumers. Production has been hobbled by a bottleneck in a handful of "manufacturing subsystems", according to a company statement. The number is expected to double up by the year 2018.
Though Tesla is no longer taking orders for the Model S 75, but there are still cars being built out and you can get one in the form of an inventory model.
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