Shropshire Star

Tesla fails to meet Model 3 targets again after slow production

Electric car company Tesla has pushed back production goals after falling way short of predicted delivery target of 4,100 in 2017

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Tesla has once again failed to reach production targets for its new Model 3.

In a letter sent out by the Californian carmaker, it says it delivered 1,550 of its new vehicle in the final three months of 2017 – 2,550 fewer than predicted.

Company chief executive Elon Musk put the target miss down to focusing on “quality and efficiency” over high production numbers.

The company expects to see a gradual production rise through the first three months of 2018, though, with the first quarter likely to end at a weekly rate of about 2,500 Model 3s. It then intends to achieve the previously predicted 5,000-per-week milestone by the end of the second quarter.

But despite the shift in delivery figures for the entry-level model – which was ordered 400,000 times in the month following its reveal – Musk claims that major progress has been made on the ‘production bottlenecks’ that have prevented the company from fulfilling its production pledge. This includes moving some of Tesla’s workforce from Model S and X production to focus on the Model 3.

The Model 3’s delivery schedule has been marred with setbacks. The firm delivered just 220 units in the third quarter of 2017.

Tesla chief executive Elon Musk (PA)
Tesla chief executive Elon Musk (PA)

He said: “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.

“We’re also very appreciative of our Model 3 customers, who continue to stick by us while patiently waiting for their cars.

“Our delivery count should be viewed as slightly conservative, as we only count a car as delivered if it is transferred to the customer and all paperwork is correct.

“Tesla vehicle deliveries represent only one measure of the company’s financial performance and should not be relied on as an indicator of quarterly financial results, which depend on a variety of factors, including the cost of sales, foreign exchange movements and mix of directly leased vehicles.”

The Model 3 is expected to arrive in the UK in 2019.

The interior of the Model 3 is focused around a large touchscreen display (Tesla)
The interior of the Model 3 is focused around a large touchscreen display (Tesla)
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