Published: Wed, October 04, 2017
Sci-tech | By Jackie Newman

Tesla Model 3 Production Off to a Slow Start

Tesla Model 3 Production Off to a Slow Start

Despite Tesla having as many as 400,000 orders for the vehicle Elon Musk views as the entry-level option for the mass adoption of EVs, the company admitted that it has only managed to produce 260 of the Model 3 since its launch this summer.

On Wall Street, Tesla bulls were undeterred while skeptics effectively said "Told you so". The Model 3's price ranges from $35,000 to near $60,000, before rebates.

"It is important to emphasize that there are no fundamental issues with the Model 3 production or supply chain", Tesla explained.

Musk has long warned investors, customers and the media that early production ramp numbers should be taken with a grain of salt, and did so again on Tesla's latest earnings call.

Altogether, Musk's third-quarter production forecast would be around 1,630 vehicles which means they were off by a whopping 84 percent.

Though it is not the first time Tesla failed to reach its production goals, it does come as a surprise.

Musk and his employees know they have a hard task ahead of him. As recently as August, Tesla said it was still on a path to average 5,000 Model 3s per week by year's end, a climb that's looking even steeper considering today's report.

Tesla is building the bank using its commercial battery, the Powerpack, which is being manufactured at the company's Gigafactory in Sparks, Nevada.

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Mendy has ruptured an anterior cruciate ligament and is facing a lengthy spell on the sidelines after undergoing surgery. Guardiola confirmed he is not going to impose more rules that force City's players to stay at home on their days off.

Tesla CEO Elon Musk was not lying when he said the company faced "production hell" keeping up with the demand for the new vehicle at the launch event.

Tesla chief executive Elon Musk has his sights set on adding a commercial electric truck alongside his mass-market electric cars.

Meanwhile, Gene Munster, of Loup Ventures, warned that "We believe Model 3 production will largely be a guessing game over the next few quarters, and could produce future disappointments". "Automotive gross margin estimates for the quarter given worse utilization on Model 3 and likely lower margin Model S/X sales", he wrote.

The second-generation Nissan Leaf offers more horsepower and almost double the range of its predecessor - and more competition for the Model 3. With a starting price of $35,000 before options or incentives, the auto is created to reach far more buyers than either the Model S sedan or Model X sport utility vehicle, which attract luxury buyers.

Tesla said it provided 26,150 vehicles in the third quarter, consisting of 14,065 Model S vehicles and 11,865 Model X vehicles, rise of 17.7 percent from the second quarter of this year.

Tesla ultimately expects to deliver about 100,000 Model S and X vehicles in 2017.

Tesla began 2016 with 6,000 production workers and finished the year with about 10,000 workers.

However, many market analysts have started talking about Tesla losing ground to Chevrolet Bolt EV.

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