Tesla's Model 3 Production Misses Target

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In Tesla's second-quarter shareholder, management said it was "confident" it could produce "just over" 1,500 Model 3 units during Q3.

Tesla said in a statement that the lower than anticipated manufacturing of the Model 3 was due to "production bottlenecks".

Tesla's CEO Elon Musk reported the company is having some production issues, or bottlenecks, with its new Model 3.

Analysts caution that it is still early days in the production schedule for the new Model 3 and that Tesla will be working hard to ensure that everything is working correctly before volume is ramped up. This was our all-time best quarter for Model S and X deliveries, representing a 4.5% increase over Q3 2016, our previous best quarter, and a 17.7% increase over Q2 2017. Those deliveries included 14,065 Model S and 11,865 Model X vehicles.

The moves also followed a series of announcements by rival General Motors on its own electric auto ambitions, which included a promise to take "bold steps" toward the first completely driverless vehicles. Tesla said those vehicles would be counted in the third quarter.

Tesla blames bottlenecks on a mere "handful" of subsystems at its manufacturing plants for the weak figures.

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Priced at $35,000 (Rs 23 lakh), Model 3 is one of the most practical electric cars around. Deliveries of these two vehicles have remained roughly at these levels over the last four quarters, raising concerns that sales have leveled off.

Tesla stock prices responded accordingly, but the automaker said not to worry.

The second-generation Nissan Leaf offers more horsepower and almost double the range of its predecessor - and more competition for the Model 3.

Reuters/Tesla Motors/HandoutTesla Model 3 owners with reservations are being told to switch to Model S.

However, many market analysts have started talking about Tesla losing ground to Chevrolet Bolt EV. To be more specific, they only managed to produce 260 of these cars so far, and they delivered 220. Tesla had previously indicated that it would reach a production run rate of 5k units per week by the end of 2017 while scaling up to nearly 10k cars per week at some point next year. Who really knows - likely not even Musk - when Tesla will be able to hit that exponential Model 3 production ramp.