Even if you happen to be lucky enough to be able to easily afford a Tesla Model 3, you still likely won’t be able to buy. Due to a variety of production issues, Tesla will be producing dramatically less Model 3s than originally intended.
Production has been slow at the Gigafactory. Originally Tesla had ambition goals of producing 20k units per week in 2017. This was later slowed to 5,000 automobiles. Unfortunately even that number has yet to be met.
So what’s the story behind these production issues? In short, designing a high-end electric car comes with quite a few challenges. These challenges become even more abundant when attempting to ramp up production yields. Of course, these production issues are nothing new and we’ve known about them since October. It’s just Tesla made it sound like they were getting closer to closing up bottlenecks and speeding things along.
It will reach its 5k goal.. Just not this year. Tesla’s latest earning report suggests they plan to reach the goal of 5,000 vehicles per week by early 2018.
Tesla just had a $619 million quarterly loss. This loss is nearly double the loss seen by Tesla in the previous quarter. And yes, production issues for the Model 3 are a part of the blame. Another part of the issue is production issues that have been facing the brand for years across a variety of models including the Model X.
What does this mean for you as a consumer? Despite profit loses, Tesla’s stock has actually surged 51 percent this year. Even though the stock has now fallen 3 percent ahead of this new quarterly earnings report, Tesla isn’t going anywhere. The brand has plenty of investors, after all.
Unfortunately, if you are actually interested in the Model 3, all of this simply means your wait is going to be a long one.