Tesla Inc (NASDAQ: TSLA) said its third-quarter Model 3 deliveries fell far short of expectations with just 220 against previous guidance of 1,500 and Baird Equity’s worst-case estimates of 300. Production figures also missed forecasts, as the automaker completed just 260 Model 3s due to “production bottlenecks” driven by longer-than-expected activation of manufacturing subsystems.
Tesla, which began production of the Model 3 in July, has so far delivered just 220 of those sedans and produced 260 during the quarter.
The production of 260 Model 3 sedans in the quarter was far below the 1,500 target and Tesla's production goal of 5,000 a week by end of this year 2017 is at risk, Cowen and Co analysts wrote in a research note on Monday.
The brokerage affirmed its "underperform" rating on the stock.
In a release issued Monday, Tesla stressed “that there are no fundamental issues with the Model 3 production or supply chain. We understand what needs to be fixed and we are confident of addressing the manufacturing bottleneck issues in the near-term.”
Tesla is also set to face increased competition as rival General Motors Co (NYSE: GM) on Monday outlined plans to add 20 new battery electric and fuel cell vehicles to its global lineup by 2023.
Tesla closed the release with, “our delivery count should be viewed as slightly conservative, as we only count a car as delivered if it is transferred to the customer and all paperwork is correct.
Tesla shares skidded $6.00, or 1.8%, to $335.52, within a 52-week range of $178.19 to $389.61
