Tesla Model 3 production misses targets for the 1st quarter

Tesla Model 3 production misses targets for the 1st quarter

Tesla Model 3 production misses targets for the 1st quarter

On Sunday, April 1, in what many would call bad taste, Elon Musk tweeted an April Fool's joke, as Tesla's stock plummets and light is shed on the recent Model X driver's death that came while using the company's "Autopilot" feature.

The Model 3 delivery figures offered some reassurance to investors, and shares in the company up 4.9% just after stocks opened in NY. Production topped 2020 units in the last week alone but it is still far behind its targets.

Tesla has hyped Model 3 a lot and has a lot of attention, but has been suffering from production woes.

"It has been extremely hard to pass the 2,000 cars per week rate for Model 3, but we are finally there".

Tesla has also stated that the delivery total for the Model S was 11,730 and 10,070 for the Model X and that the demand for both vehicles "remains very strong." . If you nnoticed, the Model 3 production was a fourfold increase over Q4 of 2017, and the company anticipates that it will continue to increase Model 3 production rates by quarter. The automaker also produces electric vehicle powertrain systems as well as components which it sells to other auto makers.

Tesla said it increased production by 40% in the first three months of 2018 - a rate of growth that it claims "will exceed even that of Ford and the Model T".

But because of repeated failures to meet past production milestones, credit rating agency Moody's downgraded Tesla's credit rating last week. The company is brand-new to high-volume manufacturing, and in its rush to get the Model 3 to market, Tesla skipped the traditional pre-production process that fine-tunes tooling and optimizes the workflow, in favor of working things out as they go.

Tesla has hit an all-time high for production last quarter.

"It comes down to the Model 3". Musk said on Twitter this week that he had been sleeping at the plant, and the company said some workers who normally assemble the Model S and Model X were shifted to Model 3 production. These vehicles will be delivered in early Q2 2018, which keeps us on track for our full-year 2018 Model S and X delivery guidance. "Nevertheless, we believe it is hard to be more constructive on the stock until there is greater evidence supporting when the 5k units a week can be achieved". This is reflected in the overwhelming delight experienced by our customers with their Model 3's.

It said order cancellations were nearly always down to delays in production and product options.

We would like to thank our customers, suppliers and investors for their continued patience and belief in Tesla.

Related news