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Tesla Model 3 Hits Snags During Production


While Tesla has high hopes for its Model 3, it seems that it has hit a bit of a wall when it comes to production. The company recently revealed that there has only been 260 of these electric vehicles made in their 3rd quarter, which is far behind Elon Musk’s, Tesla CEO, goal of 1,600 being produced out the Fremont, California facility, by end of September.

The Model 3 is set at a cost of $35,000, and in order to hit the above number, Tesla will need to push through production a little more aggressively, producing a minimum of 5,000 units of the vehicle weekly, to hit their goal by the end of this year; plus, a minimum of 500,00 Model 3s by 2018.

On a high note, QZ reported that Tesla has delivered a total of over 26,000 Model 3s in this last quarter, marking an increase of 17.7 percent compared to the same time last year.

Still, the company has yet to produce 100,000 vehicles in a year’s time. Critics can’t help but wonder if Tesla’s current production ramp up places a risk around delays and potential recalls if quality issues pop up. The company has already foregone some steps often used by other established automakers when rolling out new products.

Still, according to Tesla recent investor letter, distributed this past October 2nd, Tesla blamed the manufacturing subsystems taking unexpectedly longer to activate, when it came to delays around the Model 3. The letter stated it was vital to emphasize that there were no issues when it came to the supply chain or production of the car, and that they know what needed fixing. They also added that they were confident that they could address this issue in the near future.

Musk has described the company’s production plan in the past as an ‘S-Curve’; where smaller groups of cars would then lead to a quicker action of volume, which then levels off. Their Model X and S have followed this path previously and it seems as if the Model 3 will simply be a larger example of this production plan.