• News
  • Guides
  • Reviews
  • Media
  • About
  • News
  • Guides
  • Reviews
  • Media
  • About
Sign up Now (For Free)

Sign up for our newsletter and receive the latest automotive news in your inbox!

Invalid email address
We promise not to spam you. You can unsubscribe at any time.
Thanks for subscribing!
News
Read Now
  • All News
  • Automakers
  • Automobiles
  • Auto Shows
  • Business
  • EVs & Environment
  • Guides
  • Lawsuits/Legal
  • Regulatory
  • Ride-Sharing
  • Safety & Recalls
  • Technology
Recent
  • First Look: 2024 Toyota Grand Highlander
  • Tesla Takes Top Two Sales Spots in California for 2022
  • New Vehicle Buyers Face Squeeze as Interest Rates Climb
  • The Inside Story of the 2024 Ford Mustang Dark Horse
  • Honda’s Big Bet on Fuel-Cell Tech Doesn’t Stop with Passenger Cars
  • First Look: 2024 BMW X5 and X6
  • Nissan, Renault and Mitsubishi Expand Global Partnership
  • Better the Second Time: Mercedes-Benz eSprinter
  • VinFast Raises Launch Concerns by Cutting 80 U.S. Jobs
  • Faraday Future Secures Cash, Prepares to Build Cars
Editor’s Choice
    Reviews
    Read Now
    • All Reviews
      • Feeder
    • Classic Cars
    • Concept Cars
    • Convertibles
    • Coupes
    • Crossovers/CUVs
    • Diesel
    • Hot hatches
    • Hybrids
    • Luxury Vehicles
    • Minivans
    • Muscle Cars
    • Pickups
    • Sedans
    • Sports Cars
    • Super Cars
    • SUVs
    Recent Reviews
    • A Week With: 2023 Kia Sportage Hybrid
    • First Drive: 2023 Honda Accord
    • A Week With: 2023 Lexus GX 460 Black Line
    • A Week With: 2023 BMW X1 xDrive28i
    • A Week With: 2023 Kia Niro EV
    • A Week With: 2023 Hyundai Palisade Calligraphy
    • A Week With: 2023 Ford F-150 Raptor R 4x4 Super Crew
    • A Week With: 2023 Genesis Electrified G80 AWD
    • A Week With: 2023 Land Rover Defender 110 V-8
    • First Drive: 2023 Honda Pilot TrailSport
    Editor’s Choice
      Guides
      Car Warranty
      • Endurance Warranty Reviews
      • BMW Extended Warranty
      • Extended Warranty For Cars Over 100k Miles
      • Extended Car Warranty Cost
      • Subaru Extended Warranty
      • CarShield Reviews
      • CarShield Cost
      • Aftermarket Car Warranty
      • CARCHEX Warranty Reviews
      • Reputable Extended Car Warranty Companies
      • Used Car Warranty Companies
      • Best Car Warranty
      • Is CarShield A Scam?
      • Mercedes Extended Warranty
      • CarShield Plans
      Insurance
      • How To Identify A Car Insurance Company
      • Geico Mechanical Breakdown Insurance
      • How Far Back Does A Car Insurance Company Look
      • Mechanical Breakdown Insurance For Used Cars
      • State Farm Mechanical Breakdown Insurance
      • Mechanical Breakdown Insurance From Progressive
      • Dollar A Day Insurance
      • Auto Insurance For SSI Recipients
      • Car Insurance Rates After A Suspended License
      • Auto Insurance For Salvage Vehicles
      • Average Cost of Dodge Ram 1500 Car Insurance
      • Car Insurance Florida
      • Full Coverage Auto Insurance
      • GrubHub Insurance
      • Amazon Delivery Auto Insurance
      Shipping
      • Car Shipping Companies
      • uShip Reviews
      • Auto Shipping From California To Hawaii
      • Montway Auto Transport Reviews
      • Cheap Car Shipping
      • Easy Auto Ship Reviews
      • Auto Shipping Miami
      • Auto Shipping To Alaska
      • Car Shipping Cost
      • Auto Shipping Hawaii
      • Auto Shipping Puerto Rico
      • Sherpa Auto Transport Reviews
      • Auto Shipping Atlanta
      • Auto Shipping Boston
      • Auto Shipping. Chicago
      About
      • About Us
      • Contact Us
      • Terms of Use
      • Privacy Policy
      • Affiliate Disclosure
      • Sitemap
      TheDetroitBureau.com

      More than just “another” place to find news, reviews, spy shots, commentary, features, and guides about the auto industry. TheDetroitBureau doesn’t stop with the press releases or confuse a few lines of opinion with insightful, in-depth reporting.

      Contact Us

      Like what you see? Have some ideas for making The Detroit Bureau.com even better? Let us know, we’d love to hear your voice.

        Media
        Listen Now
        • Headlight News: All Episodes
        More from TheDetroitBureau
        • Guides
        • Latest News
        • Auto Reviews
        • Podcasts
        Headlight News

        TheDetroitBureau.com’s Headlight News offers a look at the past week’s top automotive news stories, as well as what’s coming up in the week ahead. Check out the week’s top story and our latest review…along with a dive into the past with this week in automotive history.

        home > news > Automakers > Tesla Misses By a Mile its Model 3 Target

        Tesla Misses By a Mile its Model 3 Target

        Models S and X beat forecast, but slow ramp-up of smaller sedan poses big problems.

        Paul A. Eisenstein
        Paul A. Eisenstein , Publisher & Editor-in-Chief
        Jan. 03, 2018
        A new Model 3 in front of Tesla's Fremont, California assembly plant.

        Despite promises by CEO Elon Musk, Tesla has yet to dig its way out of the “production hell” it has faced since the launch of its Model 3 battery sedan last July.

        The Silicon Valley carmaker said it delivered just 1,550 of the “affordable,” long-range electric vehicles during the fourth quarter, well below what industry analysts had been anticipating. Some had forecast the numbers would come closer to 9,000 for the October-December quarter, with even pessimists forecasting something closer to 4,000.

        Industry News!

        The shortfall means that many of the roughly 400,000 customers who have plunked down $1,000 deposits for a Model 3 could be waiting well into 2019 before taking delivery, observers warned. It also raises the specter that Tesla might have to seek more capital to offset continuing losses. The company had said it would finally get into the black as production reached the longer-term target of 10,000 vehicles a week.

        Tesla officially launched production of the Model 3 in July, the first time it had ever delivered a new vehicle on schedule. But little has gone right since then. Musk last summer warned his company would face “production hell” in ramping up the line rate at its Fremont, California assembly plant. And in that sense, he hasn’t disappointed.

        During the third quarter of 2017, Tesla produced a mere 220 Model 3s. The company on Wednesday said it has made “major progress” towards breaking “production bottlenecks.” But it didn’t come close to its original forecast, which would have seen the Fremont plant rolling out 5,000 of the electric sedans a week. That target, previously postponed until the end of Q1 2018 is now a stretch goal for the second quarter.

        Tesla's still trying to break through production bottlenecks hampering its output speed.

        (Musk gives twitter users a peek behind the curtain. Click Here for the story.)

        It’s not clear when Tesla will meet the 10,000 weekly target it had originally forecast for the end of 2018 – a rate that would have boosted Fremont’s production to an annualized 500,000. In fact, Tesla officials late last year said they have not yet even approved the money needed to boost production rates past 5,000 a week.

        Unless the carmaker can fix its remaining production problems in the coming months, analysts like CFRA’s Efraim Levy warn the automaker will fall short of cash and need to seek out new capital.

        For its part, Tesla defended its go-slow strategy, insisting that it will “focus on quality and efficiency rather than simply pushing for the highest possible volume in the shortest period of time.” There have been numerous reports indicating that a large number of the Model 3 sedans rolling out of Fremont must be set aside for rework before they can be delivered to customers. There was a significant buzz at the Los Angeles Auto Show in November when visitors began noticing extensive fit-and-finish problems with the Model 3 on display there.

        (Click Here to see more about the first Model 3 delivered to customers.)

        Despite the painful problems with the Model 3 launch, Tesla did note that things went well for its two other current models during the final quarter of 2017.

        “In total, we exceeded our previously announced guidance by delivering 101,312 Model S and X vehicles in 2017. This was a 33% increase,” the automaker said.

        Despite the ongoing problems with the Model 3, investors have largely remained bullish about Tesla. Though its shares dipped 1.02% at the end of Wednesday trading it still managed to close at $317.25 a share. That was down from a 52-week high of $389.61 but well ahead of the year-long low of $214.31.

        (Elon Musk is “dying” to build a pickup. Find out his plan. Click Here.)

        Looking forward, “In the 12-month investable time frame our rating contemplates, we see Tesla as a great company led by a true visionary, but must acknowledge the asymmetric risk/reward profile for the stock at the market’s current valuation,” Cowen analyst Jeff Osborne wrote investors. “Simply, we see a lot more that can go wrong than can go right as the company transitions into Mr. Musk’s greater vision as laid out in his Master Plan, Part Deux.”

        How to Care for Your Car

        Cheap Car Warranty

        Editor's Choice

        Best Extended Car Warranty

        Editor's Choice
        Recently Published
        2024 Toyota Grand Highlander - front 3-4 REL

        First Look: 2024 Toyota Grand Highlander

        Yesterday
        2021 Tesla Model Y blue

        Tesla Takes Top Two Sales Spots in California for 2022

        Yesterday
        February car sales

        New Vehicle Buyers Face Squeeze as Interest Rates Climb

        Yesterday

        4 responses to “Tesla Misses By a Mile its Model 3 Target”

        1. Jim says:
          January 4, 2018 at 5:31 am

          Musk should have robbed a Ford/GM plant manager and launch team and stayed out of their way. When’s the last time a Ford or GM launch was more than a week behind schedule? For the aluminum F-Series, Ford pretty much emptied the factory and started with all new equipment.

          Reply
          1. Paul A. Eisenstein says:
            January 4, 2018 at 5:08 pm

            There’ve been a few pushed back because of production issues but nothing like this.

            Paul E.

            Reply
        2. veh says:
          January 5, 2018 at 11:05 am

          Tesla DID have people they hired from other OEMs, but I believe they’ve all pretty much left.

          Reply
        3. JAE says:
          January 5, 2018 at 2:14 pm

          Agree with both. From the overly-aggressive time-to-launch schedules (like more due to cash reserves / being cash-strapped than actual belief in making the date) to making promises / keeping the “flash” going, Tesla’s launches have all been disasters. Musk is cutting his own throat.

          To start, put out a realistic date / time frame

          Next as Jim stated, get real plant manager(s) / launch teams and SOOTW (Stay Out Of Their Way)

          Understand quality is more perception than anything, especially when there’s nothing to deliver. The longer it takes to deliver the more the customer will scrutinize the product. Small gaps they may have been willing to overlook or live with will now become HUGE fitment issues.

          People aren’t going to wait forever to get your act together

          Reply

        Leave a Reply Cancel reply

        Your email address will not be published. Required fields are marked *

        Share this article:
        © The Detroit Bureau 2023
        • Guides
        • Privacy Policy
        • Terms of Use
        • Affiliate Disclosure
        • Contact Us
        • Sitemap
        Follow Us: