“Production hell” blamed for setback of Tesla Model 3 production
Elon Musk has claimed that the production of Tesla’s cheapest car has been delayed due to production bottlenecks. He expects the Tesla Model 3 to reach the desired production target by the second quarter of 2018.
Although they received 400,00 initial orders for the Model 3 in the months after its reveal, the electric maker has failed to deliver on the production front. In the third quarter of 2017, Tesla delivered on 220 units while their target was 1500. During the last three months of the year, production went up to 1550 units but their target was 4100.
Following the setback in production for the sedan, Tesla has revised its targets for 2018. The original target of 5000 units per week for the first quarter has been reduced to 2500 units. However, Tesla aims to reach 5000 units per week in the second quarter of the year as they claim that a major progress has been made in overcoming the manufacturing challenges.
This is the second time that Tesla has pushed back its production targets for the Model 3. They initially predicted reaching the 5000 units per week milestone by the end of 2017. This target was first deferred to the first quarter of 2018, and has now changed to the second quarter.
Reuters reports that the car maker delivered 29,870 units in the fourth quarter of 2017. These included 15,200 Model S units and 13,120 Model X units.
The Model 3 was unveiled to the public in early 2016 with a base price of $35,000. This makes it the cheapest Tesla model on sale. Following the initial launch, Tesla showrooms saw a huge number of people queuing outside to book the car. In August 2017, Tesla claimed to have received 500,000 reservations for the Model 3. The Tesla Model 3 costs half as much as the Model S and it competes against the BMW 3-series, Mercedes-Benz C-Class, Audi A4 and the Jaguar XE.