Published: Fri, January 05, 2018
Hi-Tech | By Cory Rios

Tesla still breaking records but missing targets

Tesla still breaking records but missing targets

Earlier this week Tesla Inc said that approximately 2 500 Model 3 sedans per week would probably be produced by the end of the first quarter.

Tesla said 860 Model 3 vehicles were in transit to customers at the end of the fourth quarter.

Confirmation of these lower-than-expected delivery figures come just a couple of days after the Californian EV startup pushed back its target of producing 5000 Model 3 sedans per week until the end of the second quarter.

"This is why we were not able to deliver many of these cars during the holiday season, just before the quarter ended", the company said.

The Model 3 - which starts at $35,000, or about half the price of its flagship Model S - was met with great enthusiasm when its prototype was first unveiled in early 2016.

The company said it manufactured 24,565 vehicles, including 2,425 Model 3s.

In a release on Wednesday afternoon, the company run by billionaire entrepreneur Elon Musk said it plans to hit a milestone of making 5,000 Model 3 vehicles per week by the end of the second quarter of this year.

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In addition to increasing efforts to ramp its workforce at its Nevada-based battery factory, Tesla's Gigafactory 2 in Buffalo, N.Y., a factory dedicated to producing solar cells for the company's line of solar panels and Solar Roof product, has headed early efforts to bring almost 3,000 jobs to the Buffalo area, as the company aims for volume production of solar products in 2019.

Caldwell said that the Model 3 delay also "definitely doesn't help" Tesla's case with bankers and investors should it need to raise additional cash for its operations, but that Tesla was "still in a reasonable period of expectations" for eventually reaching its production goals.

The automaker said that it has made "major progress" in overcoming Model 3 production bottlenecks and that it has "slightly reduced" Model S and Model X production rates in order to shift workers to the Model 3. It was unveiled in March 2016 and released a year ago.

CEO Musk promised in July that Tesla would hit that pace by the end of a year ago. The first 30 were handed over to their owners in a well-publicized ceremony, but production was initially sluggish as Tesla grappled with the challenge of quickly ramping things up, a process CEO Elon Musk has called "production hell". "The company has now said it is focused on quality versus volume, which is the right focus".

Numerous posted jobs seek specialists in factory automation. The words "do the impossible" no longer appear.

Tesla reported its largest quarterly loss on record and spent as much as $1.1 billion in cash during the quarter ending in September.

Tesla´s shares were down 2% in after hours trading on Wednesday and are around 15% below the peak of last summer.

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