Tesla failed to hit production targets for its cheapest model of electric cars in the third quarter, blaming “bottlenecks” in the manufacturing process.
The company, led by billionaire entrepreneur Elon Musk, produced 260 of the Model 3 sedans in the three months ended September, well below its target of 1,500.
Tesla said that “Model 3 production was less than anticipated due to production bottlenecks”, with a “handful” of manufacturing subsystems taking “longer to activate than expected”. It started production on the vehicles in July.
However, the company said it was confident it would be able to address the issues “in the near-term”.
“It is important to emphasize that there are no fundamental issues with the Model 3 production or supply chain,” it said.
Tesla has previously said it expects production to ramp up to 20,000 Model 3 cars per month in December.