Tesla is not having an excellent fallâand if you’re waiting on a completely new Model 3, the next few months normally are not looking good for you either.
The electric automaker has stumbled as it released the first 30 Model a few vehicles at the end of July with focused plans to scale up the operations to pump out the “affordable” electric sedans to compete with much bigger, more traditional car companies. Â
Since then, Tesla has dealt with extremely publicized Model 3 production “bottlenecks” and delivered a paltry variety of vehicles well below its focuses on, issued a recall, and terminated hundreds of employees (which spawned the lawsuit). Now, with the release from the third quarter 2017 financials within a letter to investors, the auto maker is reporting its worst quarterly loss in its historyâa $619 mil net loss. Â
Even even worse for Tesla’s fans: The auto maker has pushed back its Design 3 manufacturing goals, now price that it won’t ramp up production on the projected 5, 000 vehicles weekly until late March, according to CHIEF EXECUTIVE OFFICER Elon Musk. He gave the fresh target date later on an earnings contact, a full cycle later than formerly planned.
Musk called the wait a “relatively small shift” and even “immaterial” in Model 3’s decade-long plan.
Still, the altered timeline means Tesla has to cut back in other areas. The automaker’s various other vehicles, the Model S and even Model X, will be given fewer attention as the company shifts target to getting the Model 3 up to date. Tesla says it will produce 10 percent fewer Model S and even X vehicles to reallocate solutions to the Model 3, which Smell again donwnplayed on the earnings contact.
On a positive note, Tesla reported that deliveries on the whole were being up 18 percent year-over-year, having 26, 137 Model S, By, and 3 deliveries during the interval. The company also eclipsed 250, 000 deliveries in total since its founding, an essential milestone.
The company has its big news on the horizon, however , using its long awaited semi truck announcement scheduled for November 16. That event was pushed back due to the Model 3 bottlenecks, but also because Tesla is also working in Puerto Rico to help with hurricane recovery efforts. Â
The automaker might not have had a great fall, but it does have ambitious plans for the future. The key will be obtaining ways to actually follow through on Musk’s audacious goals. Â