Tesla had said in August that it should be able to achieve production of around 1,500 cars during the quarter, so it clearly undershot its earlier target. However, if Tesla sees a slower production ramp, with deliveries in 2018 standing at just 150k (3.8% share), growing to about 450k in 2024 (7% share), there could be some further downside. An extra 5,000 or 6,000 Model S and X deliveries is nice, but unlikely to make much difference to Tesla's ferocious rate of cash burn, forecast to be $1.6 billion for the second half, according to estimates compiled by Bloomberg.
Tesla emphasized: "It is important to emphasize that there are no fundamental issues with the Model 3 production or supply chain". The primary reason, it would seem, is bottlenecking - and a "handful" of manufacturing systems at both their Nevada Gigafactory and California vehicle plant "have taken longer to activate than expected".
Model 3 only started production in July and orders have topped 450,000 vehicles, he said. He criticized the vagueness of Tesla's disclosure about its manufacturing issues and said the company's production goals for the end of the year are "at risk".
"We believe Q3 will be the most challenging part of the Model 3 production ramp", he wrote.
Tesla ultimately expects to deliver about 100,000 Model S and X vehicles in 2017.
On July, electric vehicle manufacturer #Tesla officially launched its latest and most affordable automobile yet, the mass-market #Model 3 sedan.
All told, Tesla delivered 26,150 vehicles during the July to September quarter. The Palo Alto, California-based company delivered just 220 Model 3 sedans in the third quarter. As for performance, Model 3 will run from standstill to 100kmph in less than six seconds and comes with the range of 346km in one full charge. These will be counted as deliveries in Q4 2017, Tesla said.
It appears the company couldn't escape the manufacturing complexity entirely. The stock still performed better as investors are confident about stronger sales number for Model 3.
For now, Tesla's first "mass market EV" remains a scarce commodity. It shows a modern looking truck which is quite similar to the teaser image Tesla had released in April.