Domingo, 21 Octubre, 2018

Tesla Is Falling behind on Model 3 Production This Year

Eloisa Felix | Octubre 06, 2017, 06:44

"It is important to emphasize that there are no fundamental issues with the Model 3 production or supply chain", Tesla explained.

"The volume production of Model 3 was lower than expectations due to bottlenecks in production", - it is spoken in the message of Tesla. Judging the Model 3 on its first couple of months compared with "the breakthrough potential we expect it to deliver over the next 3yrs would be extremely short-sighted", they said in a note.

The best-selling Tesla remains the Model S, with 14,065 delivered, while 11,865 examples of the Model X were delivered in the period.

The total delivery count in Q3 2017 was 26,150 vehicles, not including 4,820 Model S and X vehicles that were in transit to customers, Tesla said.

After the bell on Monday, Tesla released production numbers for the third quarter.

"There is some risk of micro-analyzing the monthly ramp of the Model 3", he wrote.

Tesla stock traded down about 2.2% in Tuesday's premarket, at $333.87 in a 52-week range of $178.19 to $389.61.

Citing "production bottlenecks", Tesla reported this week that it delivered only 220 Model 3 sedans and produced 260 in September. The volumes for Model S and Model X "were aided overall by base price reductions, which we believe also likely limits margin upside in the quarter", the analysts said.

That said, investors won't wait forever for Tesla to hit its stride. The company isn't really selling the car to the general public at this point. The all-electric car, which began production in July, starts at $35,000. To increase the daily delivery rate from 276 a day in the first three months of the year to 288 in the last three months, Tesla has suffered negative cash flow of about $13 million a day. Tesla's high-priced crossover, the Model X, went into production in late 2015, long after originally promised and had a slower-than-expected roll out.

Ben Kallo, an analyst for R.W. Baird, for instance, told investors in September ahead of Tesla's report that the company probably delivered only about 300 Model 3s. No matter what you think of Elon Musk and Tesla itself, tripling your rate of production over a single year is an extremely ambitious goal. Unfortunately, the Model 3 has been hit by a "production bottleneck", the electric car maker revealed in a statement Monday.