Tesla (NASDAQ:TSLA) Inc shares were down during the last trading session after the company posted a report for the fourth quarter of 2017 that showed missed delivery numbers for the company for its mass-market Model 3 electric vehicle.
Although the company cut down its targets for the production and the delivery of the Model 3, investor concerns for the company’s overall ability to boost production have been raised once again as this marks the second time the company has missed on Model 3 vehicle delivery expectations.
Last October, Tesla reported that it was only able to deliver 220 units of the Model 3 with a total production of 260 units largely missing out on expectations of 1500 units of the Model 3 vehicle being produced for that quarter.
Tesla then has been able to forecast that it could be able to produce around 1,500 units of the Model 3 for the same quarter. Tesla also announced back then that it intends to boost production to 5,000 Model 3 vehicles per week before the end of 2017.
Tesla shares have slipped following their failure to meet their own estimates. However, the announcement and anticipation of the market from the company regarding its plans to reveal the first ever semi-truck has kept the stock trading mostly steady despite the disappointing production numbers.
For the fourth quarter, Tesla announced that it was only able to deliver 1,550 Model 3 vehicles which are considerately lower from the 4,100 vehicles expected by analysts. Tesla also announced that it was able to produce around 1,425 Model 3 vehicles for the fourth quarter cutting down its previous targets of producing 5,000 Model 3 cars per week by the end of the second quarter.
Tesla has also initially projected its total production to reach 500,000 by the year 2018 which is a huge leap from their total deliveries of 80,000 back in 2016. During the past couple of months, the company has announced that it has faced bottlenecks in its production of the affordable Tesla vehicle.
Currently, Tesla now expects a production of 5,000 Model 3 cars by the end of June this year pushing back their original targets by three months. The overall production outlook for the company has concerned investors again to whether how the company intends to address the issue regarding its massive cash burn which is currently at around $1 billion.