In the month of July, Tesla’s chief executive Elon Musk stated that the company would produce 5000 per week by the end of 2017, and 10,000 per week by the end of 2018. But according to the recent company’s quarterly production statement, the long-anticipated Model 3’s production was less than expected due to production bottlenecks. Though, the statement also says that the company is working to resolve the issue.
On Monday, the American automaker Tesla told that they had only formed 260 Model 3 cars from the beginning of manufacture in late July through September 30, far short of the 1,500 the company had predicted.
It’s a bad news for the company. The success or failure of the much-anticipated Model 3 could build or break the company.
The Model 3 is the most anticipated car due to its affordable price in comparison with other models of Tesla such as Model S and Model X. The Model 3 promised a range over 200 miles on a mid-30K base price along with the premium car features and style. Tesla had planned to produce 20,000 Model 3 in a month by December month and around 500,000 a year by late 2018.
In a communication with investors, Tesla blamed “production bottlenecks” for not fulfilling the expectations though no details were provided.
The company did not talk further whether it’s December or 2018 churn out forecasts remain on track or not.
Though the sales are tiny in comparison with the chief auto companies and the automaker Tesla has invested billions in cash without generating any profit, its stock cost has exceeded that of Ford and General Motors.
But in the last 3 weeks, the company Tesla’s stock is down around 10 percent. It closed up 43 cents Monday to $341.53 but fell in after-hours trading.
Talking about the Tesla Model 3 price, it would range from $35,000 to near $60,000.The Tesla cars now meet the criteria for a $2,500 state rebate and a central refund of $7,500. If it churns out the Tesla’s forecasts, conversely, the central subsidies will run out sometime in the upcoming year.
According to Tesla, more than 350,000 people have willing spent $1,000 each in refundable deposits to book the Model 3 car.
Carolyn is a technology graduate and loves to write about anything related to technology as well as writes in others sectors. Carolyn is a professional writer with over 7 years of experience. Initially starting off as a programmer, Carolyn decided to combine her knowledge about technology and writing and that’s how she joined Reporter Expert.