Tesla falls short on Model 3, but overall sales rise in 2017

January 4, 2018

Electric car maker Tesla Inc. has again fallen short of production goals for its new Model 3 sedan.

The Palo Alto, California-based company made 2,425 Model 3s in the fourth quarter. That's only a fraction of the 20,000 per month that CEO Elon Musk promised last summer when the car first went into production.

The company exceeded its overall sales targets, delivering 101,312 Model S sedans and Model X SUVs in 2017, up 33 percent over 2016.

But all eyes are on the Model 3, which is Tesla's first lower-cost, high-volume car and is crucial to its goal of becoming a profitable, mainstream automaker. Tesla at one point had more than 500,000 potential buyers on the waiting list for the Model 3. In a statement Wednesday, the company thanked those buyers "who continue to stick by us while patiently waiting for their cars."

Tesla says it made significant progress in reducing unspecified production bottlenecks toward the end of the fourth quarter. It now expects to be making 10,000 Model 3s per month at the end of the first quarter and 20,000 Model 3s per month at the end of the second quarter. But the said it's focusing on quality and plant efficiency, not just meeting volume targets.

Michelle Krebs, an executive analyst for the car buying site Autotrader.com, said Tesla would have been better served by not announcing such lofty production targets initially.

"The Model 3 must be right in terms of quality. Ramping up production levels with a flawed product is foolish," she said.

Tesla shares fell 2 percent to $310.50 in after-hours trading.

Explore further: Tesla reports record 3Q deliveries, but Model 3 lags

Related Stories

Tesla sacks hundreds of workers on Model 3 stall: source

October 16, 2017

Tesla Motors, which recently missed its production target on the high-profile "Model 3," has dismissed hundreds of employees following annual performance reviews, a person familiar with the matter said Monday.

Recommended for you

Coffee-based colloids for direct solar absorption

March 22, 2019

Solar energy is one of the most promising resources to help reduce fossil fuel consumption and mitigate greenhouse gas emissions to power a sustainable future. Devices presently in use to convert solar energy into thermal ...

4 comments

Adjust slider to filter visible comments by rank

Display comments: newest first

Eikka
not rated yet Jan 04, 2018
Michelle Krebs, an executive analyst for the car buying site Autotrader.com, said Tesla would have been better served by not announcing such lofty production targets initially.


Some said that right at the announcement of the Model 3.

But the whole point for Elon Musk wasn't to make cars, but to get investors and the state/government forking out money by over-promising and under-delivering.

Total taxpayer money taken by Tesla:
$3B-CA Factory Subsidy
$1.3B-NV tax incentive
$45M-Discounted DOE Loan
$90M-CA Alternative energy advanced trans. financing authority
$517.2M-Sale of CA and other regulatory credits
$284M-Federal income Tax credits for consumers of Model S Sedan
$38M-CA rebate for CA buyers of Model S Sedan
$126M-CA Self Generation incentive program
$647,626-CA job training reimbursement
Total Subsidy=$5,355,847,626

That's a heck of a lot of money spent with very little to show for it, and that's not even all of it.
Backgammon Player
not rated yet Jan 04, 2018
$5B -- assuming it's accurate -- is our investment in clean energy and capitalism. Tesla's market cap has risen more than enough to accrue capital gain tax well in excess of the $5B.

And that's not even counting the tax revenue that has already been generated while that $5B was trickling down and nourishing the economy.

Capitalism is the worst form of economic structure except for everything else! Don't let the haters destroy it.
Eikka
not rated yet Jan 05, 2018
is our investment in clean energy and capitalism


Tesla has nothing to do with clean energy, or capitalism. Elon Musk is a fraud who has consistently failed all his promises and projections, yet continues to collect more investments based on more false promises.

Currently he's collecting $1.5 billion by selling IOUs, to save Tesla from running out of cash.
Eikka
not rated yet Jan 05, 2018
http://ir.tesla.c...=1036192
Tesla today announced that it intends to offer, subject to market and other conditions, $1.5 billion in aggregate principal amount of its senior notes due 2025 (the "Notes"). The Notes will be senior unsecured debt obligations of Tesla.


In other words, "give us $1.5 billion, and we promise you'll be among the first to pick the bones when we liquidate on bankcruptcy".

And that's not even counting the tax revenue that has already been generated while that $5B was trickling down and nourishing the economy.


Oh, like in the GM bailout, or the bank bailouts? Give money to the already rich, and the goverment can then tax it back out of the poor.

Giving subsidies to corporations on the point of trickle down economy is like watering the lawn in the desert heat - the water does trickle down, but it evaporates back up before most of it hits the ground.

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.