Published: Wed, October 04, 2017
Science | By Tyler Owen

Tesla lost plan release Model 3

Tesla lost plan release Model 3

Tesla has sky-high expectations for the release of the all-electric Model 3 sedan, including benchmarks set by the company's CEO, Elon Musk.

Autotrader analyst Michelle Krebs opines that it will only get worse with the Model 3, the first vehicle that Tesla will produce for the mass market.

The Model 3 is Tesla's first auto for the mass market, with a price tag starting at $35,000, moving beyond its niche as a provider of luxury vehicles that typically sell for more than $100,000.

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In a statement to CNBC, the company said, "It is important to emphasize that there are no fundamental issues with the Model 3 production or supply chain". With the delay in Model 3 production, it remains to be seen whether Tesla Motors reaches production target as they envisioned. The company understands what needs to be done and that they are confident of addressing the bottleneck of production issues in nearest term. "In total, we expect to deliver about 100,000 Model S and X vehicles in 2017, which would be a 31 percent increase over 2016".

The announcement made late Monday is another sign of the challenges the upstart electric vehicle maker may face as it tries to build a more affordable electric auto - a basic version of which priced at about $35,000. Wall Street stocks edged higher early today, adding to records on continued optimism about third-quarter earnings despite a disappointing production update from Tesla. Before the end of next year, Tesla expects Model 3 production to achieve a weekly rate of 10,000 units.

The Palo Alto, California-based business delivered just 220 Model 3 sedans and produced 260 throughout the quarter. During a May financial call, Musk said he hoped for "5,000 vehicles per week at some point in 2017, and". A special evening launch event held by Tesla was powered entirely with the company's stationary energy storage solutions. Tesla sold these vehicles in the quarter to employees and investors. Of the 260 Model 3s it made during the quarter, 220 were delivered to customers, those being presumably mostly staff and investors. But the Model 3 was designed from the ground up to appeal to everyone. The production and sales for Model 3 is expected to go in full swing for Q4.

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