News Tesla Model 3 Production Is Already Behind Schedule, 'Bottlenecks' To Blame

14:21  05 october  2017
14:21  05 october  2017 Source:   MSN

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The much-hyped, low-priced Tesla Model 3 is well behind the ambitious production goals CEO Elon Musk laid out earlier this year, as the company's third-quarter earnings report released today " Model 3 production was less than anticipated due to production bottlenecks ," Tesla said in a statement.

With this pitch, approximately 375,000 customers had already deposited 00 for the Model 3 . The Tesla Model 3 is good enough for buyers to drop a thousand bucks even before the production of However, according to LearnBonds.com, the anticipated Model 3 might be a bit behind schedule .

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Related Video: Tesla Hits Speed Bump with Model 3s Production Falling Behind Estimates (Provided by Wochit Business)

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If a recent earnings report from the EV maker is any indication, however, it appears that Model 3 production is progressing as scheduled , according to a BGR report. Sightings of the Model 3 from Tesla fans seem to indicate that the car is nearing its final testing phase as well.

Model 3 passed all regulatory requirements for production two weeks ahead of schedule . As we previously reported, Tesla is expected to deliver the early production of Model 3 vehicles to employees and then to current Tesla owners in California.

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The much-hyped, low-priced Tesla Model 3 is well behind the ambitious production goals CEO Elon Musk laid out earlier this year, as the company's third-quarter earnings report released today reveals that only 260 Model 3s have been produced since July. Musk previously predicted at least 1,500 cars would be built by the end of September.

The Model 3 represents the biggest challenge to date for Tesla, which quickly needs to transition from a small-volume automaker in order to live up to the lofty expectations set for their mass-market electric car. Getting the estimated 500,000 deposit-holders in the driver's seat will require building more cars than the company's entire production output since its founding.

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Tesla 's CEO, Elon Musk, had previously guided for Q 3 production to be above 1,500 vehicles, so, as of this point, the company seems to be meaningfully behind schedule . Depending on the additional time needed to overcome the current Model 3 production " bottlenecks ", another capital raise in the

Tesla is behind on Model 3 production . New, 14 comments. “ Production bottlenecks ” are to blame for the poor starting pace, according to Tesla , which says that “a handful” of manufacturing subsystems at both its California plant and Nevada Gigafactory “have taken longer to activate than

For much of this year, Musk has referred to (but not entirely explained) an "exponential growth" strategy for ramping up the Model 3 assembly lines, where capital from both investors and sales would be poured into the car's production ahead of other priorities. The company knows it won't be easy, as Musk alluded to the upcoming "manufacturing hell" at the Model 3 launch this summer. But it also never backed off his initial 1,500-unit Q3 goal, even if Wall Street started to last month.

  Tesla Model 3 Production Is Already Behind Schedule, 'Bottlenecks' To Blame © Tesla

As we now know, they didn't make it, and it wasn't even close. It wasn't all bad news for Tesla shareholders—the company had a record quarter for Model S and Model X deliveries, putting them on pace to meet their combined 100,000-unit goal for 2017—but missing the Model 3 target by over 80 percent is not a great look. Industry analysts previously predicted at least 500 would be built.

"Model 3 production was less than anticipated due to production bottlenecks," Tesla said in a statement. "Although the vast majority of manufacturing subsystems at both our California car plant and our Nevada Gigafactory are able to operate at high rate, a handful have taken longer to activate than expected."

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Tesla Model 3 Production Schedule . Discussion in ' Model 3 ' started by MikeDog77, Aug 1, 2017. That is why it is used as the basis. It was not meant to blame others, like Iceland.

The start of Tesla Model 3 production and the subsequent ramp-up are increasingly becoming the focus of industry watchers and Tesla enthusiasts. Interestingly, he had previously mentioned that the stamping press that they ordered from Schuler could be the biggest bottleneck at this point.

With its immense footprint and production capabilities, the Gigafactory in particular will be vital in scaling up the Model 3's numbers. Tesla has done a decent job meeting the market demands of its other offerings, quality issues notwithstanding. But as other companies continue to move into the lower-priced EV space, meeting consumer (and investor) expectations is just as important—if not more so.

"It is important to emphasize that there are no fundamental issues with the Model 3 production or supply chain," the statement reads. "We understand what needs to be fixed and we are confident of addressing the manufacturing bottleneck issues in the near-term."

We'll see if that's the case in a few months. 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.

This article was originally published on TheDrive.com

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