Pushback: Tesla Provides Details on Model 3 Production Delays and “Bottlenecks”

Elon Musk, Tesla’s CEO, points to production bottlenecks for delays in the rollout of the Model 3, the brand’s more affordable sedan. Musk blames a subcontractor for dropping the ball on the Model 3’s automation to assembly battery pack project. Because of the production delays, Tesla is on track to rollout less than the 5,000 vehicles per week initially targeted for the first quarter of 2018. The company plans to unveil its semi-truck mid-November, which will revolutionize electric drive for the trucking industry.

Key Takeaways:

  • The Tesla Model 3 has experienced production delays due to issues with automation in the production process. Many parts are still being put together manually by hand.
  • The production rate can potentially be increased to 7,000 with the implementation of more automated processes and additional robots at choke points.
  • There is a high possibility that Tesla will continue to experience delays and backlogs up until year 2019. Tesla may need to source cars from China to satisfy demand.

““Production bottlenecks” were cited by Musk for the Model 3 delays, and it has now been clarified that automation is at least partly to blame.”