The markets may have just opened, but Tesla Inc. (NASDAQ:$TSLA) is already struggling. That’s not a total surprise though, considering Elon Musk’s auto manufacturing company reported its third-quarter earnings yesterday – and it was not good.
As of 12:44 p.m. EDT, the Tesla stock is down 6.92%. As mentioned, this probably has to do with the fact that Tesla announced that it will no longer be reaching its goal of manufacturing 5,000 Model 3 cars per week this year, moving that deadline back amongst output problems and, let’s not forget, a $619 million quarterly loss.
The Palo Alto California-based company said Wednesday that Model 3 output has been slowed by the progress of its Gigafactory. Tesla now says – fingers crossed – that they will reach their goal of manufacturing 5,000 vehicles per week by early 2018, rather than by the end of this year.
Here’s what Tesla had to say:
“While we continue to make significant progress each week in fixing Model 3 bottlenecks, the nature of manufacturing challenges during a ramp such as this makes it difficult to predict exactly how long it will take for all bottlenecks to be cleared or when new ones will appear.”
For those who don’t know, the company first disclosed their production problems in October, when it said it had only made a mere 260 Model 3’s since the car’s initial launch this summer. CEO Elon Musk is known famously for blaming “production hell” and “bottlenecks” for the lower yield.
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