New Tesla Model failed the target

Tesla's third quarter Model 3 delivery miss is further evidence the electric car maker will have difficulties ramping up manufacturing for the vehicle, according to a top Wall Street firm.

The company has fallen behind on its delivery aim of 1600 all-new Model 3’s according to its delivery and production figures for the Q3 2017 period.

Only 260 examples of the mid-size entry level Tesla Model 3 have been built in the third quarter of 2017. Of the 260 built, 220 have been delivered to customers since it went on sale in July.

It was in July when Tesla CEO Elon Musk stated on Twitter that 1600 Model 3’s would be produced by the end of September, with that figure rising to 20,000 by December. With a waiting list over 400,000 long, the vast majority of buyers will have to wait until 2018 to get their cars. With Musk revealing that: “If you order a Model 3 now you’ll probably get it towards the end of next year”.

According to the press release, ‘production bottlenecks’ were the reason behind Tesla’s missed production target for the new Model 3. The statement also stressed that there are “no fundamental issues with the Model 3 production or supply chain” and that they “understand what needs to be fixed and we are confident of addressing the manufacturing bottleneck issues in the near-term.”

Goldman analyst David Tamberrino reaffirmed his sell rating for Tesla shares, predicting Model 3 production will be slower than expected, as CNBC reported.

We "maintain our more cautious ramp of Model 3 deliveries which fell below our Street-low estimate for the quarter. We believe this likely puts downward risk to the company's communicated S-curve to the Model 3 production ramp," Tamberrino wrote in a note to clients Tuesday. "We continue to maintain our more cautious Model 3 ramp, which is far below company targets."