Model 3 productions taking longer than expected
With the Model 3 in production, Tesla is having problems meeting the demand of the customers. The Model 3 is Tesla’s mass market electric sedan priced at $35,000 before tax incentives. In 2016, over 400,000 customers placed a down payment of $1,000 in order to reserve the electric car with a then delivery date of late 2017. It now looks like the delivery date for a majority of the cars will be pushed to 2018.
The few customers that received their car have had issues with build quality and missing features. The car currently does not have a working FM radio and those that have purchased the autopilot will not have access to it at first. Tesla have notified customers that this will be addressed in a future update.
Tesla reported 2017 Q3 Earnings and shocked investors with a greater than expected loss of $619,000,000. To meet production demands, margins will have to be reduced, production outlook is reduced and cash flow positive will be pushed until 2018 Q3. Tesla CEO Elon Musk said during the conference call that the manufacturing will increase exponentially with every manufacturing issue addressed.
Tesla’s website states that delivery of a Model 3 ordered today will be delivered in 12 to 18 months as of this writing.