Tesla is still struggling with Model 3 production

Tesla is still way behind on its Model 3 production goals -- but the company swears it's getting better.In a p...

Posted: Jan 4, 2018 12:04 PM
Updated: Jan 4, 2018 12:04 PM

Tesla is still way behind on its Model 3 production goals -- but the company swears it's getting better.

In a press release issued Wednesday, the electric carmaker said it churned out just 2,425 Model 3 sedans over the last three months.

Tesla said last year that it hoped to be making 5,000 Model 3s per week by the end of 2017 before pushing that target back to March 2018. Now, it's not expecting to hit that mark before June this year.

Still, the company promised it "made major progress addressing Model 3 production bottlenecks, with our production rate increasing significantly towards the end of the quarter."

In a blog post Wednesday, Loup Venture co-founder Gene Munster responded to Tesla's report, calling the production ramp "encouraging."

But none of that appeared to quell all investors' fears. Tesla's shares sank more than 2% at one point during after hours trading.

The Model 3 is the electric carmaker's first mass market car with a base price of $35,000, and it's key to Tesla's business model. It costs much less than its other two models: the Model S sedan and the Model X SUV.

In a statement Wednesday, Akshay Anand, executive analyst for Kelley Blue Book, pointed out how important the car is for Tela.

"[I]f Tesla is solving its 'production hell' issues, it has a chance to get on track toward its lofty expectations," Anand said. "Regardless, the reality still remains: Tesla needs to get the Model 3 right in order to succeed as a company."

Related: Does Tesla have enough cash to fix Model 3 production woes?

Demand for the Model 3 has soared, but Tesla has hit numerous roadblocks trying to get production up to speed.

That means the company has built about 2,700 Model 3s since production officially began in October last year.

Only time will tell if the startup can reach its goal of eventually churning out 10,000 Model 3's a week.

Company officials originally said Tesla could hit that rate sometime in 2018 -- but it's since pulled back on that promise.

All of these production woes come as Tesla continues to spend about $1 billion per quarter. In its latest earnings release in November, the company posted the largest quarterly loss in its history.

Some analysts worry that the automaker is headed for a cash crunch. And the company is facing at least one lawsuit from shareholders over its ongoing Model 3 production issues.

--CNNMoney's Chris Isidore contributed to this report.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 313166

Reported Deaths: 7228
CountyCasesDeaths
DeSoto21496257
Hinds20294414
Harrison17814309
Rankin13573278
Jackson13411246
Madison10066217
Lee9962173
Jones8364163
Forrest7649152
Lauderdale7181240
Lowndes6370145
Lamar621686
Lafayette6171118
Washington5323133
Bolivar4797132
Oktibbeha461498
Panola4561105
Pearl River4499145
Marshall4397103
Warren4380121
Pontotoc419572
Monroe4100133
Union409076
Neshoba4026176
Lincoln3950110
Hancock377786
Leflore3487125
Sunflower335790
Tate332484
Pike3301105
Scott315373
Alcorn311968
Yazoo310769
Itawamba299477
Copiah296465
Simpson294788
Coahoma294379
Tippah287768
Prentiss279560
Adams269582
Marion268880
Leake266273
Wayne262341
Grenada260386
Covington256381
George246848
Newton246061
Winston226881
Tishomingo225967
Jasper220848
Attala214173
Chickasaw207157
Holmes188673
Clay184754
Stone182033
Tallahatchie178140
Clarke177879
Calhoun170132
Yalobusha163337
Smith162234
Walthall133845
Greene130333
Lawrence128323
Montgomery126742
Noxubee126734
Perry125938
Amite122842
Carroll121728
Webster114532
Jefferson Davis106932
Tunica104826
Claiborne102230
Benton99125
Humphreys96133
Kemper95428
Franklin83623
Quitman80216
Choctaw76118
Wilkinson66930
Jefferson65428
Sharkey50317
Issaquena1686
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Alabama Coronavirus Cases

Cases: 530325

Reported Deaths: 10966
CountyCasesDeaths
Jefferson763971520
Mobile40908804
Madison34717503
Tuscaloosa25730452
Montgomery24314588
Shelby23401249
Baldwin21107307
Lee15856171
Calhoun14488314
Morgan14282279
Etowah13819353
Marshall12210223
Houston10557280
Elmore10044205
Limestone9954150
Cullman9649193
St. Clair9644242
Lauderdale9419241
DeKalb8825185
Talladega8214175
Walker7223277
Autauga6918108
Jackson6804112
Blount6651137
Colbert6292134
Coffee5506119
Dale4828111
Russell440638
Chilton4279112
Franklin425582
Covington4118118
Tallapoosa4019152
Escambia393276
Chambers3559123
Dallas3547151
Clarke350861
Marion3113100
Pike310577
Lawrence299898
Winston274072
Bibb260464
Marengo249264
Geneva249077
Pickens234160
Barbour230757
Hale222677
Butler215969
Fayette212062
Henry188744
Cherokee184445
Randolph179941
Monroe177340
Washington167039
Macon158750
Clay156156
Crenshaw152057
Cleburne148741
Lamar141934
Lowndes138653
Wilcox127030
Bullock123041
Conecuh110129
Perry107526
Coosa107128
Sumter104332
Greene92334
Choctaw60424
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