October 3, 2017

SMALL GOAL MISSED BY A WIDE MARGIN: Tesla Misses Model 3 Production Goals.

The Silicon Valley electric-car maker built 260 of the Model 3s between July and September, the company said Monday in a statement. In August, the auto maker predicted it would build more than 1,500 Model 3s before cranking up production to 5,000 a week by the end of the fourth quarter.

The Model 3, which starts at about $35,000, represents Chief Executive Elon Musk’s bet that he can transform the luxury auto maker into a more mainstream player around the world. Tesla blamed “production bottlenecks” for the weaker production.

“It is important to emphasize that there are no fundamental issues with the Model 3 production or supply chain,” Tesla said in a statement. “We understand what needs to be fixed and we are confident of addressing the manufacturing bottleneck issues in the near-term.”

Elon Musk’s ramp-up goal for the Model 3 always seemed optimistic, verging on wildly so. And setbacks like today’s on an entirely new vehicle are to be expected even from an old-school automaker with a century of experience.

But you still have to wonder if, after producing the 500,000th Model 3 and filling all the pre-orders, just how much mass market there really is at this early stage for electric vehicles.

InstaPundit is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.