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Tesla Model 3 production issue tied to suppliers, 3,005 cars will be delivered in 2017

Tesla Model 3 manufacturing bottlenecks are linked to suppliers that have failed to meet their delivery time frames, says Oppenheimer & Co. The additional insight was provided in a research note sent to investors following a dinner held in New York for Tesla management.

Tesla reaffirmed with Oppenheimer that all Model 3 production equipment is installed and vehicles are making their way through the production line. The electric carmaker and its CEO Elon Musk have continued to dispel a recent report that claimed large portions of the Model 3 were being built by hand. Musk recently shared a video of the Model 3 body line in action, followed by another video showing Model 3 body panels being stamped at the Fremont factory.

Though Tesla produced only 260 Model 3 vehicles at the end of September, far from the 1,500 units that Musk had originally anticipated, the company is expected to achieve an exponential production ramp period in the coming months and produce up to 5,000 Model 3 vehicles per week in December. Oppenheimer expects that Tesla will deliver 3,005 Model 3 and 100,056 total vehicles in 2017.

According to the analyst note that was received by Fortune, Tesla expects to achieve 25% margins on the first production Long Range Model 3 vehicles that are priced closer to $49,000 with options. Tesla did not indicate what type of margins it expects for the Model 3 base version that begins at $35,000.

 

Tesla Model 3 production issue tied to suppliers, 3,005 cars will be delivered in 2017

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