Tesla Reports New Setback for Model 3, With Output Lagging

Tesla Model 3

Tesla will start producing 2,500 Model 3s weekly by the end of the first quarter of the year, the company said in yet another update that disappointed thousands of people who have preordered the auto as well as investors, sending its shares down by 2 percent after hours.

Slow production could affect the number of Model 3 buyers who receive the $7,500 federal electric vehicle tax credit, and it is unclear whether this may drive away buyers, said Cowen analyst Jeffrey Osborne.

"We're very grateful to everyone at Tesla who has poured their heart and soul into helping with the Model 3 ramp and creating the progress we are seeing".

"As we continue to focus on quality and efficiency rather than simply pushing for the highest possible volume in the shortest period of time", read the trading note.

Gruden returns to Oakland as Raiders head coach
Barring anything unexpected, Gruden is calling his last game on Saturday when the Kansas City Chiefs host the Tennessee Titans . The team went 30-34 in his four seasons, making the playoffs twice and winning one game before retiring again.

Estimates for Model 3 deliveries varied wildly, coming in as low as 800 from Colin Rusch of Oppenheimer all the way up to 2,250 from Jeffrey Osborne of Cowen & Co., and about 5,800 from analysts at Evercore. Previously, Tesla was hoping to reach the 5,000/per week rate by the end of March.

Michelle Krebs, an executive analyst for the auto buying site Autotrader.com, said Tesla would have been better served by not announcing such lofty production targets initially. The company has also said that welding processes and final assembly tasks at its vehicle factory in Fremont, Calif., were moving more slowly than expected. "That the Model 3 is moving slowly isn't a surprise". For the year gone by, Tesla delivered 102,432 vehicles, a solid increase from the 83,922 vehicles it delivered in 2016. "Ramping up production levels with a flawed product is foolish". It also surpassed its 100,000-vehicle goal for 2017.

The Model 3 notwithstanding, Tesla did manage to enjoy a successful quarter overall; the company delivered more than 29,800 vehicles over the past three months, setting an all-time quarterly record in the process. This was once again our all-time best quarter for combined Model S and X deliveries, representing a 27% increase over Q4 2016, and a 9% increase over Q3 2017, our previous best quarter. The Model S led with 15,200 finding customers, followed by the Model X at 13,120. These will be counted as deliveries in Q1 2018, Tesla said.

Related:

  • QB making his sixth playoff trip with Falcons

    Jones caught nine passes for 94 yards as Atlanta's offence chewed up the clock and field position. The fourth-year defensive tackle from Pitt was a disruptive force on almost every play.

    Mariota, Titans mount second half comeback, beat Chiefs 22-21

    Tennessee's divisional-round opponent depends on the outcome of Sunday's Buffalo Bills-Jacksonville Jaguars game. On the Chiefs' ensuring drive, tight end Travis Kelce appeared to lose the ball on a hit by Johnathan Cyprien .
    Novak Djokovic explains his plans ahead of Australian Open

    Novak Djokovic explains his plans ahead of Australian Open

    The 36-year-old went on to win the tournament, defeating her sister in the final, before taking the remainder of the year off. There is no word yet on when she will be, but Miami in March may be a good bet.
  • Lalu sentenced to 3.5 years in jail in fodder scam case

    Lalu sentenced to 3.5 years in jail in fodder scam case

    His son Tejashwi Yadav said that they will approach the high court and also apply for bail after studying the sentence. There were 34 accused, out of which 11 died during the trial while one turned CBI approver and admitted to the crime.
    Helena Bonham Carter might be joining The Crown and we're conflicted

    Helena Bonham Carter might be joining The Crown and we're conflicted

    Vanessa Kirby returned as the obstinate and passionate princess Margaret in season 2 and once again, stole every scene she was in. But as synonymous as Foy, Matt Smith, Kirby, and the others have become with their roles, they have worthy successors.
    Liverpool's Mo Salah Caps Off Blistering Year By Winning African POTY Award

    Liverpool's Mo Salah Caps Off Blistering Year By Winning African POTY Award

    In the pre-CAF awards conference, Egypt worldwide and Liverpool's winger, Mohamed Salah , reflects on his career so far and his move to the Reds.
  • Plane evacuated after Toronto airport collision

    The aircraft was stationary and waiting for a gate when the Sunwing plane, which was being pushed back from the gate, ran into it. WestJet said all 168 passengers and six crew members on board its plane were safe and accounted for.
    Oakland Raiders set to sign Jon Gruden to landmark deal

    Oakland Raiders set to sign Jon Gruden to landmark deal

    Gruden last coached in the National Football League in 2008 with the Buccaneers, whom he led to a Super Bowl title in 2002. Oakland had previously traded Gruden to Tampa Bay for four draft picks after Gruden spent four seasons with the team.
    Caitlyn Jenner didn't trust Kardashians with her biggest secret

    Caitlyn Jenner didn't trust Kardashians with her biggest secret

    The ITV special is due to air tomorrow, however audiences have been treated to a quick snippet - and Ms Jenner does not hold back. I want my voice to be heard? Caitlyn Jenner continues to distance herself from the Kardashian-Jenner family...
  • Trump reiterates border wall promise, with a catch

    Trump reiterates border wall promise, with a catch

    So the funds Trump seeks from Congress would be enough to say that by 2027, just over half the border is walled off. President Trump this week asked Congress for $18-B to pay for the 1st phase of The Wall's construction .
    Khloe Kardashian Reveals What She'll Name Her Baby, Talks Possible Marriage

    Khloe Kardashian Reveals What She'll Name Her Baby, Talks Possible Marriage

    Khloe , who wore a tight white dress on the show, also said she plans to avoid wearing maternity clothes "as long as possible". She hopes to marry Thompson in the future, although she's "not in a rush" to Wednesday the Cleveland Cavaliers player.
    Apple: Mac and iPhone both affected by big chip vulnerability

    Apple: Mac and iPhone both affected by big chip vulnerability

    It also reported that the updates to fix the problems could causes Intel chips to operate 5 percent to 30 percent more slowly. If the prediction was wrong, this speculative execution is rolled back in a way that is meant to be invisible to software.

Comments

Latest news

Chelsea held by second-tier Norwich
On the touchline, Alvaro Morata was swiftly summoned from his stretching and told to ready himself to come on. January is a notoriously hard time to make good signings, particularly at the price paid for Barkley.

Transport workers in TN reject Madras HC direction to call off strike
The commuters complained that auto rickshaws and taxis charged exorbitant fares as the public transport system was hit. The minister said, "I appeal to employees to come back for duty, honorable court has also asked them to come back".

NASA Mourns Loss of Astronaut John Young, Visited the Moon Twice
The US agency said on Saturday that the former astronaut's death was due to complications following pneumonia. In 1981, Young commanded the shuttle program's inaugural mission, orbiting Earth 37 times in the Columbia .

Twitter Just Explained Why It Won't Ban Donald Trump
There have been repeated calls for Twitter to ban the USA president, who regularly uses the platform to attack his critics.

Jimmy Iovine plans to leave Apple Music in August
Word of Iovine's departure first surfaced on the website Hits Daily Double , and was later confirmed by Billboard and Bloomberg . Apple Music executive Jimmy Iovine is reportedly planning to depart from Apple in August, according to the latest media reports.

Cancer Death Rates Fall: Here's Why
Cancer deaths have fallen yet again, thanks mostly to huge declines in smoking , the American Cancer Society said Thursday. The report estimates about 1.7 million people will develop cancer and about 610,000 will die from it in 2018.

David Letterman Netflix Series Gets Premiere Date, Title - Watch Teaser
The six-episode, 60-minute talk show series is set to debut January 12, with a new episode released each subsequent month. The six-episode show features Letterman extensively interviewing one person inside and outside of a studio setting.

DJs React to Pres. Trump's Nuclear Button Tweet
Her statement comes after Trump took to Twitter Tuesday to respond to Kim's claim that he possesses a nuclear button on his desk. He said there can be little doubt that worldwide pressure, including sanctions ordered by the U.N.

Sessions nixes Obama-era rules leaving states alone that legalize pot
It also might spark something of a federalist crisis, and it drew some resistance even from members of Sessions's own party. Ryan Tarkowski, a Pennsylvania State Police spokesman, said that based on a 2011 directive from the U.S.

Failed missile test hits North Korean town
According to the report the missile never rose higher than 70km before crashing into either industrial or agricultural buildings. However, the cold relationship between South Korea and the North showed signs of thawing in the beginning of 2018.

First blue moon total eclipse in 150 years coming January 31
But since it's rare to get a second full moon in a month, that moon doesn't have a name, making it a " blue moon ". For some parts of Asia, including India, the eclipse will already be under way as the moon rises.

Alexa will soon be able to control ovens and microwaves
According to a report from Emarketer released in May previous year , Amazon dominates the voice-controlled speaker market. Beyond that, Amazon plans to expand the API to support conventional ovens and other cooking devices.

When Is 'Game Of Thrones' Season 8 Premiering?
At last, HBO has confirmed the long-speculated news that its flagship hit series Game of Thrones is taking a year off. In the other news, GOT fans who are disappointed with the delayed release of the show, here's something to cheer up.

Starbucks responds to 'latte levy' with 5p cup charge to cut waste
Now the Environmental Audit Committee's plan to bring in a tax on disposable coffee cups is in the proposal stage. Even when consumers place coffee cups in recycling bins, there's now no way for recycling plants to recycle them.

Justin Timberlake Channels His Inner Steve Jobs in 'Filthy'
The futuristic video features Timberlake directing a number of dancing robots to the tune of the new electro-funk infused track. He said in a video announcing the new album that his son, wife and his home state of Tennessee were his biggest inspirations.

Other news