Tesla deliveries increased in third quarter

Tesla deliveries increased in third quarter

Tesla has published hugely optimistic Model 3 production forecasts in the past, and it still seems to be sticking by them.

Breitbart News reported in June 2016 that despite Tesla never meeting any of its production targets or making a profit in the last five years, CEO Elon Musk told shareholders at the company's annual meeting that through "physics-first-principles", Tesla would shape a new mode of industrial production to improve efficiency by "factors of 10 or even 100 times". According to Tesla, the Model 3 production was less than it predicted due to "production bottlenecks".

In a note to investors Monday, Tesla blamed "production bottlenecks" but offered no details.

The production of Tesla's Model 3 isn't going as planned.

"It is important to emphasize that there are no fundamental issues with the Model 3 production or supply chain", Tesla continued.

In the third quarter, Tesla delivered 26,150 total vehicles and just 220 Model 3 cars versus the FactSet estimates of 25,860 and 1,260, respectively.

Although X deliveries have improved throughout 2017, the Model 3 was supposed to enjoy some of the fruits of that learning process. Second, it raised sales guidance for its established Model S and X vehicles. In the third quarter, Tesla only managed to make 260 copies, less than the 1,500 units projected back in August.

Tesla hopes its $35,000 Model 3 will make electric vehicles America's main form of transportation.

As for the other two Tesla variants - Model S and Model X - the company achieved its "all-time best quarter" in terms of deliveries. It also said that while the "vast majority of manufacturing subsystems at both our California car plant and our Nevada Gigafactory are able to operate at high rate, a handful have taken longer to activate than expected".

Certain statements herein, including statements regarding future deliveries of Model S and Model X and production of Model 3, are "forward-looking statements" that are subject to risks and uncertainties.

Musk has previously talked of Tesla production goals as being aspirational, and noting that even simple things, such as a delay in parts delivery, can have outsize consequences on production.

GM on Monday also outlined plans to add 20 new battery electric and fuel cell vehicles to its global lineup by 2023.