Tesla (NASDAQ:TSLA) has reported missing its production goal for the new Model 3 by a wide margin. Tesla's press release acknowledged the shortfall was due to a few systems at its California production plant and its battery Gigafactory in Nevada, which "have taken longer to activate than expected". "Our 2018 target of [120,000] Model 3 deliveries continues to bake in high levels of uncertainty around future production bottlenecks". The company insisted there are no fundamental issues with the Model 3 and that it understands what needs to be fixed. Tesla, however, highlighted deliveries of its more time-tested models-in Q3, the company delivered 25,930 model S and X vehicles, which is a record for the electric vehicle startup.
This, it added, made Q3 its all-time best quarter in deliveries to customers, marking a 4.5pc increase on the previous year.
The announcement made late Monday is another sign of the challenges the upstart electric vehicle maker may face as it tries to build a more affordable electric auto - a basic version of which priced at about $35,000.
Tesla's mixed results were announced hours after a senior General Motors executive revealed that the US giant had laid out plans to go "all electric".More news: Who Is Geary Danley? 4Chan Falsely Identifies Las Vegas Shooting Suspect
Second quarter deliveries of these two vehicles are expected to exceed first quarter deliveries by several thousand vehicles, Tesla said.
The Model 3 has become Tesla's most anticipated vehicle, garnering hundreds of thousands of preorders due to its promise of a mid-30K base price and a range well over 200 miles, not to mention premium auto features and style. Musk said Tesla's key advantage in building all-electric vehicles was limiting the number of moving parts.
September was supposed to be the Model 3's big month. A special evening launch event held by Tesla was powered entirely with the company's stationary energy storage solutions.
Tesla in general is not growing almost as fast as it has in the past.
For now, Tesla's first "mass market EV" remains a scarce commodity.
Tesla began 2016 with 6,000 production workers and finished the year with about 10,000 workers.