In the latest Tesla Model 3 news, deliveries of the newest electric vehicle from the automaker were lower than expected and it’s causing some to worry about the company’s production abilities. The Tesla company has cited “production bottleneck” as the reason for the lower-than-expected delivery numbers. While the carmaker has been able to produce a steady amount of their other electric vehicles, the Model 3 has failed mightily to hit their initial goal. Still, the company is seeming to be confident that they will be able to address these concerns going forward and resolve the issues over Tesla Model 3’s numbers.
A report on Monday via CNBC indicated that Tesla delivered a total of 26,130 vehicles during the third quarter of this year, which was up four percent over the production total from the same time just last year. However, just 220 of this year’s 26,130 deliveries were Tesla Model 3 deliveries. The rest of the total deliveries consisted of 14,065 Model S cars and 11,865 Model X cars. The electric vehicle maker had previously given a goal of building 1,500 Model 3 vehicles for the third quarter, with the latest report number falling extremely short of that mark.
The company addressed the delivery issue in a statement which cited production bottlenecks from their manufacturing subsystems.
“Although the vast majority of manufacturing subsystems at both our California car plant and our Nevada Gigafactory are able to operate at a high rate, a handful have taken longer to activate than expected.
“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.”
The new Tesla Model 3 vehicles began delivery as of early July, with CEO Elon Musk receiving the first of the deliveries. Towards the end of the month, the first 30 Model 3 production units were delivered to customers, with a number of the cars presented to their new owners in Fremont, California. There are still pre-order deliveries to be made and it’s been said that those who purchase a new Model 3 car now will be waiting into 2018 for delivery of their new vehicle. Engadget even suggested back in July that it would take up to two years for the company to deliver all of the Model 3’s originally pre-ordered. The Tesla Model 3 has a starting price of $35,000 for the base model.
Concerns over the company’s ability to hit key production numbers have hit the Tesla stock. It had previously seen a 52-week high of nearly $390, but closed around $341 on Monday with an after-hours price of $336.79, a drop of over four percent. One has to think that Tesla is still an emerging company that is ironing out its wrinkles as it moves forward with plans to revolutionize the automotive industry. That said, missing their production numbers by over 1,000 is a large miss, but one the company can surely work out.
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