It seems Tesla is diving deeper in production hell, as it breaks yet again another production promise with the delay of the manufacturing of one of its Tesla car models.
Tesla Model 3's production target has been delayed again, consequently setting back the goals of Elon Musk, the CEO of the company, for the electric cars. The production of 5,000 Model 3 cars has been pushed back three months, which is now expected to be reached by the end of June this year.
Late last year, it can also be noted that Tesla also had similar plans and milestones by the end of 2017 but ultimately failed to fulfill their promises and quota. Apparently, the company is having trouble scaling up their outputs for the car despite spending a lot on capital goods, mainly robots, which were supposed to ramp up the production level of their factories enough to have goals met.
The company is now reportedly spending as much as $1 billion for every quarter of a year just for the production alone. Analysts, however, were convinced that Tesla could be needing even more capital increase in order to scale up their production. It was not specified how much more is needed given how poorly the previous production capacity scaled up.
Still, the car manufacturer is ahead of Ford based on the financial readings for 2017 despite its shares falling 2.1 percent during the start of 2018. It did not, however, meet the analysts' estimate car deliveries of 2,900 units during the last three months of 2017, falling short at only 1,550 Model 3s.
Tesla's problems seemingly blew up during the summer of 2017 at both the company's Fremont, Calif., auto assembly plant and its "Gigafactory" battery plant in Nevada, which placed the company under production hell, or a difficult period of production which puts a lot of stress on all the aspects of the company.
It remains to be seen whether Tesla can recover from its delays and production hell, but 2018 already seems to be a troublesome year for them given the latest delay.
