Tesla Just Announced The Latest Model 3 Production Delay

07 January, 2018, 08:50 | Author: Barbara Daniel
  • Tesla misses its Model 3 deliveries by a mile (TSLA)

But it was already hard to see how Tesla can sell the Model 3 at its $35,000 starting price and pull in 25 percent gross margins, which are typical of higher-end luxury cars, Brinkman said.

Tesla will start producing 2,500 Model 3s weekly by the end of the first quarter of the year, the company said in yet another update that disappointed thousands of people who have preordered the auto as well as investors, sending its shares down by 2 percent after hours. As expected, Model S and Model X production was down in the quarter to make room for the Model 3.

But the company has so far has pushed back its target of making 5,000 Model 3's per week twice.

Tesla delivered 29,870 vehicles in the fourth quarter, a 27% increase over the same quarter in 2016 and 9% more than the third quarter. "But we rather suspect that the materially missed launch cadence could be the result of too optimistic assumptions on the company's part as regards the ease of manufacturing the Model 3".

Tesla delivered 47,077 vehicles in the first half of 2017, 26,150 vehicles in Q3, and now this new record in Q4, Tesla has now delivered over 100,000 vehicles in 2017. We intend to achieve the 5,000 per week milestone by the end of Q2. And factoring the Model 3 out of the equation, Tesla notes that Model S and Model X deliveries alone grew by 33%.

Despite continued headwinds with the Model 3, Tesla did manage to deliver more of its Model X, Model S, and Model 3 vehicles than in previous quarters.

Days before the trading update hit investors, Musk reached out to Model 3 customers on Twitter to thank them for standing by the company while they sorted out efficiency issues. Yet in the same period, 63,000 were cancelled, Elon Musk said during Tesla's quarterly conference call in July-a figure he saw as insignificant as it happened over 12 months.

We're very grateful to everyone at Tesla who has poured their heart and soul into helping with the Model 3 ramp and creating the progress we are seeing. Final numbers could vary by up to 0.5%.

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