Tesla temporarily suspends Model 3 production
26 at the Tesla store in Washington. (Salwan Georges/The Washington Post)
For the second time since February, Tesla said Monday it has temporarily suspended production of its Model 3 sedan, a move that analysts say underscores the immense challenges for the company to deliver its first mass buy canada goose jacket cheap market electric vehicle.
The pause comes canada goose uk outlet just days canada goose coats after cheap canada goose chief executive canada goose black friday sale Elon Musk downplayed worries about manufacturing delays with the Model 3, and after the company disclosed it had failed to meet its goal of producing 2,500 cars per week by the end of the canada goose store first quarter. Analysts say that a successful rollout of the Model 3 is canada goose coats on sale crucial to the company’s long Canada Goose Parka term success. And for Musk himself, the car represents the culmination of cheap Canada Goose a plan to supply affordable, widely available vehicles powered solely by electricity.
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The company uk canada goose outlet said in a statement that the pause in Model 3 production was planned and Canada Goose sale “not unusual.” The downtime will be used to “improve automation and systematically address bottlenecks in order to increase production rates,” Tesla said. The statement used the same language during the halt in production earlier this year. Tesla did not say how long canada goose uk black friday the suspension, which was first reported by BuzzFeed, would last.
While production hitches are not unheard of, planned delays are not common, said Akshay Anand, an executive analyst with Kelley Blue Book. Nonetheless, he was not surprised Canada Goose Coats On Sale by the suspension. “This is canada goose clearance sale Tesla’s first go around of really mass producing something. This is not the Canada Goose Online Model S officialcanadagoosesoutlet or the Model X that’s only accessible to the elite. And when you have something canadian goose jacket that’s mass marketed, it’s a different ballgame.”
Analysts say that smooth Model 3 production can help the company stem its money losing operations. Tesla reported net losses of more than $770 million in the last three months of last year, up from $219 million during the same time in 2016. “While further delays would not necessarily ‘make or break’ Tesla, they will invariably exacerbate cash burn,” Toni Sacconaghi, an analyst at Bernstein, said in a research note Tuesday. He canada goose added that if Tesla does deliver on the Model 3, however, the company could still thrive because of the rapid growth of the electric vehicle Canada Goose Outlet market and the lack Canada Goose online of competition at the Model 3’s price.
Tesla has said canada goose factory sale it expects Model 3 production to escalate buy canada goose jacket quickly, despite prior delays. Earlier this month the company said it aims to produce 5,000 uk canada goose vehicles per week. That would require the company to more than double its current rate.
Musk has blamed production delays, in part, on an overreliance on automation. He said customers of the Model 3 will receive their vehicles, but not as early as they had planned. “There shouldn’t be a question mark as to whether somebody’s going to get their car,” Musk told cheap canada goose uk “CBS This Morning” in an interview last week. “It’s canada goose clearance a six to nine month time shift that’s literally it and three of those months have already passed.”
Tesla has received more Canada Goose Jackets than 400,000 canada goose uk shop reservations from customers for the Model 3, according to reports, which requires a $1,000 deposit. The cheapest version of the car will cost $35,000 and will begin to ship in late 2018, the company said.