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Tesla is still struggling with Model 3 production

Tesla is still way behind on its Model 3 production goals -- but the company swears it's getting better.In a p...

Posted: Jan 4, 2018 12:04 PM
Updated: Jan 4, 2018 12:04 PM

Tesla is still way behind on its Model 3 production goals -- but the company swears it's getting better.

In a press release issued Wednesday, the electric carmaker said it churned out just 2,425 Model 3 sedans over the last three months.

Tesla said last year that it hoped to be making 5,000 Model 3s per week by the end of 2017 before pushing that target back to March 2018. Now, it's not expecting to hit that mark before June this year.

Still, the company promised it "made major progress addressing Model 3 production bottlenecks, with our production rate increasing significantly towards the end of the quarter."

In a blog post Wednesday, Loup Venture co-founder Gene Munster responded to Tesla's report, calling the production ramp "encouraging."

But none of that appeared to quell all investors' fears. Tesla's shares sank more than 2% at one point during after hours trading.

The Model 3 is the electric carmaker's first mass market car with a base price of $35,000, and it's key to Tesla's business model. It costs much less than its other two models: the Model S sedan and the Model X SUV.

In a statement Wednesday, Akshay Anand, executive analyst for Kelley Blue Book, pointed out how important the car is for Tela.

"[I]f Tesla is solving its 'production hell' issues, it has a chance to get on track toward its lofty expectations," Anand said. "Regardless, the reality still remains: Tesla needs to get the Model 3 right in order to succeed as a company."

Related: Does Tesla have enough cash to fix Model 3 production woes?

Demand for the Model 3 has soared, but Tesla has hit numerous roadblocks trying to get production up to speed.

That means the company has built about 2,700 Model 3s since production officially began in October last year.

Only time will tell if the startup can reach its goal of eventually churning out 10,000 Model 3's a week.

Company officials originally said Tesla could hit that rate sometime in 2018 -- but it's since pulled back on that promise.

All of these production woes come as Tesla continues to spend about $1 billion per quarter. In its latest earnings release in November, the company posted the largest quarterly loss in its history.

Some analysts worry that the automaker is headed for a cash crunch. And the company is facing at least one lawsuit from shareholders over its ongoing Model 3 production issues.

--CNNMoney's Chris Isidore contributed to this report.

Minnesota Coronavirus Cases

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Cases: 486434

Reported Deaths: 6575
CountyCasesDeaths
Hennepin1009131586
Ramsey43165803
Dakota36375392
Anoka33335388
Washington22121258
Stearns18752201
St. Louis14822263
Scott13308107
Wright12538116
Olmsted1181788
Sherburne874172
Carver775640
Clay692387
Rice670791
Blue Earth596635
Kandiyohi579674
Crow Wing521282
Chisago499545
Otter Tail483270
Benton447790
Winona418549
Mower405731
Douglas393368
Nobles387247
Goodhue386269
Polk343763
McLeod340049
Beltrami338651
Morrison324747
Itasca313646
Lyon313644
Becker312542
Isanti306756
Steele301511
Carlton300149
Freeborn282623
Pine282016
Nicollet259241
Todd248330
Brown245537
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Meeker207434
Martin189928
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Murray9488
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Cook1180

Iowa Coronavirus Cases

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Cases: 335218

Reported Deaths: 5443
CountyCasesDeaths
Polk51785551
Linn19463313
Scott17080210
Black Hawk14924292
Woodbury13778212
Johnson1312174
Dubuque12416194
Dallas1019092
Pottawattamie9828143
Story959345
Warren511674
Clinton500784
Cerro Gordo498882
Webster494487
Sioux479169
Marshall463072
Des Moines427161
Muscatine424191
Buena Vista412237
Wapello4025108
Jasper386266
Plymouth367478
Lee354252
Marion339869
Jones284654
Henry279637
Bremer268754
Carroll266349
Crawford252235
Boone242830
Benton240354
Washington239047
Mahaska215246
Jackson209738
Dickinson202440
Tama202365
Kossuth198055
Delaware185540
Clay183825
Winneshiek182827
Fayette178635
Page177819
Buchanan176929
Wright173831
Hamilton173742
Cedar171523
Hardin169439
Harrison167169
Clayton159854
Butler158831
Mills147920
Floyd147741
Poweshiek147730
Lyon145541
Cherokee145336
Allamakee142347
Madison141918
Iowa139423
Hancock137630
Grundy132030
Winnebago130231
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Jefferson128334
Appanoose123147
Louisa122341
Mitchell120440
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Union118731
Sac118318
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Howard99021
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Monroe89428
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Ida81032
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Monona76327
Greene72910
Lucas71421
Osceola68215
Worth6667
Taylor64112
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Ringgold50520
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