Tesla also said in its news release that 2,425 Model 3s were made in the fourth quarter (793 of those made in the last seven days of the quarter), about ten times as many as were produced in the third quarter at its Fremont, California facility.
But the company has so far has pushed back its target of making 5,000 Model 3's per week twice.
Slow production could affect the number of Model 3 buyers who receive the $7,500 federal electric vehicle tax credit, and it is unclear whether this may drive away buyers, said Cowen analyst Jeffrey Osborne. "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".
Initially, Tesla planned to roll out 5,000 Model 3s weekly by the end of the fourth quarter of 2017.More news: Spotify Sued For $1.6 Billion For Using Thousands Of Songs Without License
"Tesla would have been better served had it not announced such lofty plans for its production ramp-up", Michelle Krebs, executive analyst for Autotrader said in an email. The slowdown may mean the vehicle is tougher and more expensive to manufacture than the company had thought, Brinkman said.
Tesla Inc.'s (TSLA) delivery of its new Model 3 electric vehicle fleet fell short of Wall Street's estimates in the fourth quarter and reported production issues have clouded public opinion of the company's newest sedan.More news: Deviljho Is Monster Hunter
"The Model 3 must be right in terms of quality. Ramping up production levels with a flawed product is foolish".
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. For the year gone by, Tesla delivered 102,432 vehicles, a solid increase from the 83,922 vehicles it delivered in 2016.More news: Trump slams FBI, Clinton for 'garbage' dossier
While investors certainly won't look at another Model 3 production delay favorably, they may at the very least find solace in the fact that interest in the Model S and Model X is higher than it's ever been. And factoring the Model 3 out of the equation, Tesla notes that Model S and Model X deliveries alone grew by 33%. These will be counted as deliveries in Q1 2018, Tesla said.
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