The upcoming brand new Tesla Model 3 is now in production. However, the company and the model has undergone some scrutiny when reports of the production line being faulty had come up. The machines that are manufacturing the cars are currently being fixed. This meant that the products were being hand made for the meantime, which could compromise quality. Company CEO Elon Musk took to social media, proving that these claims to be false.
Reports regarding the production woes of the Tesla Model 3 initially had come from the Wall Street Journal. After the reports had come out, Tesla experienced a drop in its stock market shares. The company described the report by Wall Street to be "fundamentally wrong, and misleading." However, the damage had already been done.
Another factor that could be affecting the company's stocks is the fact that the production of the new cars has significantly been slower than anticipated, only being able to come up with 220 units as opposed to the expected 1,260 units. However, Musk posted on his Instagram that there is absolutely nothing wrong with the machines in the production line, showing one unit of the Tesla Model 3 being made with the video slowed down.
According to Jalopnik, Musk stated in a tweet that the machines running to manufacture the vehicles have been slowed down to a third of its manufacturing speed, so that when employees encounter a problem, it would not be difficult for them to halt production. This could be very disconcerting news for potential customers, since news like this usually means that a product can likely encounter factory defects.
However, this explains why production has been much slower than anticipated. Additionally, the precaution the company has taken could be necessary to ensure quality control for the Tesla Model 3. As for the delivery, according to Inc., Musk is hoping that by July, 2018 the company will be able to deliver the demand of about 5000 units per week.
