The newest Tesla Inc (NASDAQ:TSLA) Model 3 delivery wait just got a little longer as the newly released production numbers disappointed the investors. Tesla Inc (NASDAQ:TSLA) stock, which closed down 1% at $317.25, continued dropping in afterhours trading and fell -2.07%.
Early Model S had a lot of issues with inconsistent panel gaps, but as Tesla Inc (NASDAQ:TSLA) built more and more of them, this problem has been disappearing. Many thought that the same would happen with Model 3 – that early cars would have issues, and later cars wouldn’t. The fact that these “first-batch” cars to the public do not have these issues shows that Tesla is not just getting better at making the Model S, but better at making cars in general.
Tesla Inc (NASDAQ:TSLA) said late Wednesday it had delivered 29,870 electric cars in the last quarter of 2017, which included just 1,550 of the lower-priced Model 3 sedans. Overall deliveries were up from the 25,336 vehicles it shipped in the third quarter, but the all-important Model 3 numbers were well below what analysts anticipated and what Tesla CEO Elon Musk once predicted.
More than 400,000 people have put down $1,000 deposits for the right to order a $35,000-and-up Model 3, whose success many analysts say is critical to Tesla’s survival as a mass-market manufacturer.
“Tesla would have been better served had it not announced such lofty plans for its production ramp-up,” Krebs said. “The company has now said it is focused on quality versus volume, which is the right focus. The Model 3 must be right in terms of quality. Ramping up production levels with a flawed product is foolish.”
In a statement, Tesla officials said the company continues to “focus on quality and efficiency rather than simply pushing for the highest possible volume in the shortest period of time,” and anticipates ending the first quarter at a weekly rate of about 2,500 Model 3 vehicles, and wrapping up the second quarter making 5,000 Model 3s per week.