News Worms
News Worms


Tesla Confirms Model 3 Shortfall

Tesla Confirms Model 3 Shortfall

Tesla Model 3 production target has been missed by a significant margin which could be problematic for the electric auto manufacturer.

Electric carmaker Tesla revealed on Monday that it has missed its initial shipment goal for the new Model 3, the company's first lower cost, more mainstream electric vehicle. A "handful" of its manufacturing machines have taken longer to move into a higher production rate than expected, said the company.

Production of the new Model 3 has run into some snags, according to Tesla.

"In our opinion, quality and attractiveness of early production is far more important than the quantity delivered - at least for now", he said Tuesday in a note to clients, adding that "most auto launches have hiccups, and Tesla is no exception".

While Model S and Model X deliveries are breaking records, portraying a 4.5 percent increase from Q3 2016 and a 17.7 percent growth from Q2 2017, the Model 3 is way behind with production figures at 260 and delivery at 220.

The announcement made late Monday is another sign of the challenges the upstart electric vehicle maker may face as it tries to build a more affordable electric auto - a basic version of which priced at about $35,000. The company officially began deliveries of the Model 3 on July 28.

Tesla announced it fell far short of its plan to build 1,500 of its first mass market vehicle, the Model 3, in the third quarter.

All told, Tesla delivered 26,150 vehicles during the July to September quarter. Musk said Tesla's key advantage in building all-electric vehicles was limiting the number of moving parts.

The Model 3's success is critical, demonstrating that Tesla can cultivate a much wider market for its vehicles - going up against increasingly electrified incumbent automakers over time - and that the manufacturing prowess of which CEO Elon Musk has boasted repeatedly is real.

During second quarter, Tesla reported slightly better results as the company booked $100 million in ZEV credit sales. Tesla produced 25,708 vehicles in the second quarter.

Model 3. Image source: Tesla.

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

follow

editors' picks

October 03, 2017
Guardiola says Barcelona should have called off match over vote violence
Third-place Atletico Madrid could not manage more than a 0-0 draw at Leganes, dropping six points behind Barcelona . Ahead of the game, reports surfaced that FC Barcelona had requested that the game be postponed.

October 03, 2017
Carson Palmer hits Larry Fitzgerald for game-winning touchdown in OT
Prescott made some big time throws , including 2 TDs in the second half, which was enough to seal the Cardinals fate. Coming off of his best performance as a 49er, WR Marquise Goodwin will look to build on this against Arizona.

October 03, 2017
McDonald's Is Bringing Back Szechuan Sauce Just For One Day
There will also be 1,000 limited edition posters for the various dipping sauces McDonalds has available. I'm driven by finding that McNugget sauce.

October 03, 2017
Minors killed and some injured as Pakistan violates ceasefire
Pakistan has violated the ceasefire a number of times in the a year ago . Pakistan violated ceasefire in Keri and Digwar areas of Poonch district.

October 03, 2017
Pound Falls As UK Factory PMI Rises Less-than-expected
Neil Lloyd, sales director at law firm, FBC Manby Bowdler, observed: "The strong performance this month should come as no surprise".

October 03, 2017
Trial begins for women accused of assassinating Kim Jong-un's brother
But after North Korea barred Malaysian diplomats and their families from leaving its territory, Malaysia relented. Their defence lawyers are likely to argue that the real culprits are North Korean agents, who left Malaysia.

October 03, 2017
Nigel Farage Tells LBC New Leader Henry Bolton Gives Ukip "Hope"
Bolton went further and claimed that Ukip would be in danger of becoming the "UK Nazi party" if it chose the wrong leader. Waters' defeat indicates the party is likely to keep its focus on Brexit instead of expanding it to include Islam.

October 02, 2017
Marilyn Manson injured by falling prop at NYC show
Manson is schedule to perform in Boston on Monday night; it's unclear whether that performance or any others will be cancelled. Manson is in the middle of a tour promoting his new album Heaven Upside Down , which is released this Friday.

October 02, 2017
Malaysian Grand Prix strategy guide
Force India's driver Perez also gave his support Thursday to the protesting sports stars. Ultimately it is down in performance, but fortunately it didn't make a difference".

October 02, 2017
Jets squeak by with OT win over Jaguars
That put the visitors right back in things as the Jets' lead was pared to 20-17 with 10:20 to play. The Jets back had 72 yards on the ground through New York's first three games of the season.