Tesla Model 3 misses its production targets for the Q ended September 2017
Tesla Model 3 production has been missed as the company produced just 17% of its target. Elon Musk announced the production targets in July at the official Tesla Model 3 launch. He also announced a little later that the Model 3 electric car would be headed for South Africa.
Tesla produced 260 Model 3 electric cars and delivered 220 of them in the Q ended September 2017. This off the target set by the company of 1,500. To be fair, Elon Musk did say at the official launch of the Tesla Model 3 that the company would be in “production hell” initially in order to keep up with consumer demand. Orders are almost at 500,000 with consumers having put down a $1000 deposit. Tesla gives consumer deposits back should you cancel your order according to the Tesla website. 63,000 people have cancelled their orders but this has been over the period of 1 year and not related to the production bottlenecks.
Growing production numbers
While having fallen short on production of the Tesla Model 3, the total production is growing. Model S production fell by -11% YoY in the 3rd Quarter while the Model X grew by 36%. This means total production to Tesla electric cars grew by 4.5% for Q3 of 2017.
With the introduction of the Model 3, and Teslas commitment to producing 10,000 Model 3s sometime in 2018 to get to 500,000 Model 3 electric cars produced per annum, these total production numbers will grow exponentially in years to come.
Loss making Tesla is more valuable than General Motors who sold 10 million cars last year and generated a profit of over $9m. GM announced its plans to produce 23 all electric cars by 2023. Tesla is well on the way already.
This is evidence that consumer confidence in Tesla, but more importantly the demand and interest in electric cars, are high.
Does this mean delays for Tesla reaching South Africa?
I am not sure what the bottlenecks in production mean for Elon Musks promise to send the Model 3 to South Africa. I am however cautiously optimistic that our South African born Elon will overcome and overachieve on the Model 3.