Company boss Elon Musk claims progress on clearing 'production bottlenecks', despite falling short on promised deliveries in final quarter of 2017

Tesla has pushed back its production targets for the Model 3 once more, after again falling short of its delivery goals in the final quarter of 2017.

The California firm delivered 1550 of its Model 3 cars to customers in the final three months of last year according to Reuters, short of the 4100 expected by most industry analysts. The firm has now said it expects to be producing 2500 Model 3 per week by the end of the first quarter of 2018, half of its original target of 5000 cars per week. Tesla says it will reach 5000 models per week by the end of the second quarter. 

Analysis: Will the Model 3 make or break Tesla?

 

Despite the pushback in production for the entry-level model, for which Tesla received more than 400,000 orders in the month following its reveal, company CEO Elon Musk has claimed that major progress has been made on the so-called production bottlenecks which have so far prevented the company from fulfilling its production pledge of the Model 3. In a statement, Tesla said that in the final week of 2017 it hit a production rate that would equate to 1000 Model 3 per week.

The Model 3’s delivery to customers has been marred with setbacks, with Musk describing the Model 3’s build setbacks as ‘production hell’. The firm delivered just 220 model 3s in the third quarter of 2017, compared with a target for the period of 1500. 

The machine is not due to arrive in the UK until early next year, although Autocar is awaiting comment from a Tesla spokesman couldn’t on whether the production setbacks will affect the delivery time of UK-bound vehicles.

Tesla told Reuters that, in total, it had delivered 29,870 cars in the fourth quarter of 2017, including 15,200 Model S and 13,120 Model X. That is broadly in line with industry expectations that the firm would deliver 30,000 cars.

Read more

Analysis: Will the Model 3 make or break Tesla?

Tesla Roadster: Elon Musk confirms faster version is due

Tesla Model 3 confirmed with 310-mile range in US

Tesla falls behind on Model 3 deliveries

Polestar to take on Tesla with Model 3 rival and SUV by 2019

Join the debate

Comments
14

4 January 2018

Hmm would this happen at an established car maker? I seriously wouldn't want to buy something from Tesla when their experience of volume car making is so limited.

4 January 2018

Hmm would this happen at an established car maker? I seriously wouldn't want to buy something from Tesla when their experience of volume car making is so limited.

4 January 2018

Trouble is the underachieved production sounds bad in percentage terms but production is so low anyway its really just a piddly few cars here or there. But with so many resources and $$$ (or at least time to go out and buy resources such as poaching other companies production talent) it is surprising production isn't sorted and climbing exponentially by now...

4 January 2018

July:30, Aug:75, Sep:115, Oct:145, Nov:345 LAST WEEK in Dec:1,000. 

I.E. Nearly 3 times as many in Nov as Oct, nearly 5 times as many in Dec as Nov. - Exponential growth in my book

So as of now Tesla are the biggest builders of EV's (ahead of BAIC) and the Model 3 is by far the highest selling EV.

Agreed it was a major *****up to begin with, Musk is just too ambitious sometimes and needs to be pulled back

 

Hydrogen cars just went POP

4 January 2018

Sorry mean’t by the end of Jan the Model 3 will be the highest selling BEV.

 

Hydrogen cars just went POP

4 January 2018
xxxx wrote:

July:30, Aug:75, Sep:115, Oct:145, Nov:345 LAST WEEK in Dec:1,000. 

I.E. Nearly 3 times as many in Nov as Oct, nearly 5 times as many in Dec as Nov. - Exponential growth in my book

So as of now Tesla are the biggest builders of EV's (ahead of BAIC) and the Model 3 is by far the highest selling EV.

Agreed it was a major *****up to begin with, Musk is just too ambitious sometimes and needs to be pulled back

I was sort of defending him actually. Whilst statistically insignificant numbers are rolling off the lines (in the grand scheme of planned production) I think the criticism of not meeting target he gets is a bit unfair. Lets see if it reaches full production level.

 

4 January 2018
The Apprentice wrote:

xxxx wrote:

July:30, Aug:75, Sep:115, Oct:145, Nov:345 LAST WEEK in Dec:1,000. 

I.E. Nearly 3 times as many in Nov as Oct, nearly 5 times as many in Dec as Nov. - Exponential growth in my book

So as of now Tesla are the biggest builders of EV's (ahead of BAIC) and the Model 3 is by far the highest selling EV.

Agreed it was a major *****up to begin with, Musk is just too ambitious sometimes and needs to be pulled back

I was sort of defending him actually. Whilst statistically insignificant numbers are rolling off the lines (in the grand scheme of planned production) I think the criticism of not meeting target he gets is a bit unfair. Lets see if it reaches full production level.

 

 

Is it unfair? Let's see how long it takes Jaguar to ramp up production of their electric car when launched..... Something tells me it will be more reliable and better built than anything made by Tesla today and that unlike the model X the doors will close. I'm not a Tesla hater, I admire the work they've done, but as established car makers enter the field and get things like ergonomics right let's see how long they last!

4 January 2018
The Apprentice wrote:

xxxx wrote:

July:30, Aug:75, Sep:115, Oct:145, Nov:345 LAST WEEK in Dec:1,000. 

I.E. Nearly 3 times as many in Nov as Oct, nearly 5 times as many in Dec as Nov. - Exponential growth in my book

So as of now Tesla are the biggest builders of EV's (ahead of BAIC) and the Model 3 is by far the highest selling EV.

Agreed it was a major *****up to begin with, Musk is just too ambitious sometimes and needs to be pulled back

I was sort of defending him actually. Whilst statistically insignificant numbers are rolling off the lines (in the grand scheme of planned production) I think the criticism of not meeting target he gets is a bit unfair. Lets see if it reaches full production level.

 

 

Is it unfair? Let's see how long it takes Jaguar to ramp up production of their electric car when launched..... Something tells me it will be more reliable and better built than anything made by Tesla today and that unlike the model X the doors will close. I'm not a Tesla hater, I admire the work they've done, but as established car makers enter the field and get things like ergonomics right let's see how long they last!

6 January 2018
TStag wrote:

The Apprentice wrote:

xxxx wrote:

July:30, Aug:75, Sep:115, Oct:145, Nov:345 LAST WEEK in Dec:1,000. 

I.E. Nearly 3 times as many in Nov as Oct, nearly 5 times as many in Dec as Nov. - Exponential growth in my book

So as of now Tesla are the biggest builders of EV's (ahead of BAIC) and the Model 3 is by far the highest selling EV.

Agreed it was a major *****up to begin with, Musk is just too ambitious sometimes and needs to be pulled back

I was sort of defending him actually. Whilst statistically insignificant numbers are rolling off the lines (in the grand scheme of planned production) I think the criticism of not meeting target he gets is a bit unfair. Lets see if it reaches full production level.

 

 

Is it unfair? Let's see how long it takes Jaguar to ramp up production of their electric car when launched..... Something tells me it will be more reliable and better built than anything made by Tesla today and that unlike the model X the doors will close. I'm not a Tesla hater, I admire the work they've done, but as established car makers enter the field and get things like ergonomics right let's see how long they last!

 

No way - you have to be kidding. I've owned Jaguar (2 x F-Type) and Tesla Model S. The product quality and service level from Tesla is in a different league. The Experience is in a different stratosphere. 

Once Jaguar can make cars where paint does not flake off, engines blow-up, audio systems are implemented in a shoddy fashion all whilst the customer service organisation close their ears, they don't stand a chance.

Oh, and how is their Super Charger network progressing?

 

Lotus Evora 400

4 January 2018
xxxx wrote:

July:30, Aug:75, Sep:115, Oct:145, Nov:345 LAST WEEK in Dec:1,000. 

I.E. Nearly 3 times as many in Nov as Oct, nearly 5 times as many in Dec as Nov. - Exponential growth in my book

So as of now Tesla are the biggest builders of EV's (ahead of BAIC) and the Model 3 is by far the highest selling EV.

Agreed it was a major *****up to begin with, Musk is just too ambitious sometimes and needs to be pulled back

 

Thank you for the insight, a few questions:

Q1: Why are Q4 2017 production figures lower that Q4 2016 figures? They sold 1% lesser cars than 2016, despite making 2,425 Model 3s in Q4. 

Q2: Are Tesla adjusting Model S & X production due to reduced demand, increasing inventory and massive dealer discounting?

Q3: How much has productivity fallen since Tesla has almost doubled its headcount over the last year. Considering sales have generally flatlined!

Pages

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • Vauxhall VXR8 GTS-R
    Car review
    12 January 2018
    Vauxhall bids farewell to its line of Aussie performance legends in some style with the limited edition VXR8 GTS-R
  • Alfa Romeo Stelvio
    Car review
    12 January 2018
    Alfa Romeo’s first SUV aims to hoist the handling panache of the Giulia saloon
  • Volkswagen Polo 1.0 TSI
    First Drive
    11 January 2018
    Sixth-generation Volkswagen Polo arrives in the UK with a emphasis on safety and refinement. Could that be enough to see it become supermini king?
  • Skoda Karoq 1.6 TDI 115 SE
    First Drive
    11 January 2018
    The smaller Skoda Karoq diesel is a sensible choice, if a little underpowered; even in base SE trim, though, you're unlikely to be left wanting for kit
  • Toyota Yaris GRMN
    First Drive
    10 January 2018
    First new-breed Toyota hot hatch is expensive but within sight of its best-handling rivals. Troubled in some ways, but appealingly honest, engaging, characterful and different