The massive auto and tech giant recently took the headlines as their Model 3 deliveries didn’t meet the target number of vehicles. Tesla is seemingly under a massive production problem which pulls most deliveries down; the company’s shares were also affected by the deliveries news in the after-hours trading.
According to reports, Tesla’s deliveries for the fourth quarter last 2017 fell short on a handful of analysts and expectations on Wall Street’s. The expected numbers were greatly lower as the news has been suggesting that a major production flaw and production bottlenecks are abruptly apprehending the Model 3 deliveries.
Tesla’s shares were also struck by the delivery failures; their shares dipped by a massive 2% on the after-hours trading before easing to relatively 1% decline on the same period.
Tesla also added that "As we continue to focus on quality and efficiency rather than simply pushing for the highest possible volume in the shortest period of time, we expect to have a slightly more gradual ramp through Q1, likely ending the quarter at a weekly rate of about 2,500 Model 3 vehicles,"
Reports revealed that the company managed to produce a total of 2,425 Model 3 for the fourth quarter but reports revealed that they only managed to deliver a total of 1,550. According to Tesla, "We intend to achieve the 5,000 per week milestone by the end of Q2”
2017 Delivery Details
Tesla also stressed that they have been on the grind and noted that they have made “major progress” in terms of their widely criticized production bottlenecks which is the main reason for the failed delivery marks they have last year. All-in-all, Tesla reported that they managed to ship and deliver a whopping 29,870 vehicles for their fourth quarter last year, 1,550 of them are the Model 3.
Furthermore, the company also managed to deliver a total of 15,200 Model S sedans and 13,120 Model X SUVs last year. Tesla’s figures were highly better than in 2016, they managed to increase the overall deliveries by 27% for both of the Models. They also managed to push their third-quarter performance by 9% from a year ago which is regarded to be Tesla’s best quarter.
Tesla Deliveries Plan
According to the company, “In the last seven working days of the quarter, we made 793 Model 3s, and in the last few days, we hit a production rate on each of our manufacturing lines that extrapolates to over 1,000 Model 3s per week,”
The recent announcement of the production bump is still a massively lagging behind most carmaker companies. A most common production pace for most automakers in the market rakes up 1,000 units per day.
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