TSLA Stock: Tesla Model 3 production targets pushed back again despite progress

0
113
Tesla Model 3 production targets have been delayed again by the car manufacturer despite some progress in the factory.Now, CEO Elon Musk has said the EV company will be likely to build around 2,500 Model 3s per week by the end of the first quarter of 2018.Musk expects this to double to 5,000 per week by the end of the second quarter.This is the second time Tesla has delayed production targets of the car since the vehicle was announced.

Initially, the car firm suggested that it could build 5,000 Model 3s by Q4 in 2017.

However, “production bottlenecks” saw the car fall way behind its target with just 2,425 Model 3s produced in Q4, according to the company’s shareholder letter.Tesla claimed in the letter that is has addressed some of the bottlenecks and production of the car neared 1,000 units per week by the end of the year.“During Q4, we made major progress addressing Model 3 production bottlenecks, with our production rate increasing significantly towards the end of the quarter.“In the last seven working days of the quarter, we made 793 Model 3’s, and in the last few days, we hit a production rate on each of our manufacturing lines that extrapolates to over 1,000 Model 3’s per week.

The Model 3 body line slowed down to 1/10th speed

A post shared by Elon Musk (@elonmusk) on

“As a result of the significant growth in our production rate, we made as many Model 3’s since December 9th as we did in the more than four months of Model 3 production up to that point.

“This is why we were not able to deliver many of these cars during the holiday season, just before the quarter ended.

“Model 3 deliveries to non-employee customers are now accelerating rapidly, and we’re confident our customers will love them.”

The company also thanked everyone at Tesla “ who has poured their heart and soul into helping with the Model 3 ramp” leading to this progress in production.

Tesla also thanked its customers for their patience during the initial issues it has had with production.

Despite the underwhelming Model 3 production in 2017, Models S and Model X sales increased, contributing to its best ever quarterly sales.

Over 100,000 vehicles were delivered by Tesla in 2017 and the company achieved record deliveries of 29,870 vehicles in Q4.

In this quarter 15,200 Model S vehicles and 13,120 Model X vehicles were made and sold and 1,550 Model 3 units.

This was an 27 per cent increase over Q4 2016, and a 9 per cent increase over Q3 2017.

“In total, we exceeded our previously announced guidance by delivering 101,312 Model S and X vehicles in 2017. This was a 33 per cent increase over 2016.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here