2017.10.0301:18:00UTC+00Tesla Fails to Hit Model 3 Production Targets

While electric car maker Tesla Inc. reported that its deliveries increased 4.5 percent during the third quarter from the same period last year, it said “production bottlenecks” has caused the firm to miss its target for the ramp-up for the new Model 3 sedan.

The luxury automaker said it rolled out 26,150 cars in the third quarter, comprised of 14, 065 Model S cars and 11, 865 Model X vehicles. The figures denotes a 17.7 increase from deliveries from the second quarter of the year.

Tesla managed to deliver just 22 Model 3 sedans and manufactured 260 during the period. In July, it began the mass production of the Model 3, which is priced starting at $35, 000- almost half the starting price of the Model S.

In its second-quarter financial report, the company said that it anticipates to hit a rate a of 5, 000 Model 3 vehicles on a weekly basis by the end of the year. The carmaker also said it anticipates at some point next year to further step up to a rate of 10, 000 Model 3 vehicles per week and an annual production rate above 500, 000 cars.

Tesla stated it was bound to deliver around 100, 000 S and X models this year. However, it said that a number of systems at its facilities in Nevada and California have suffered setbacks.