Tesla Model 3 deliveries hit 1,550 in Q4; production goal pushed back again

tesla model 3
Tesla Model 3 deliveries reached 1,550 units in the fourth quarter of 2017, according to the company, which also delivered 15,200 Model S and 13,120 Model X electric cars during that period. But all eyes are on Model 3 production figures as Tesla works to fill a long list of orders.

Tesla said it actually built 2,425 Model 3s during the quarter, but not all cars had been delivered to customers. The company said it was not able to deliver many of the Model 3s it built because of a production spurt that came just before the holiday season. Tesla says it built 793 Model 3s in the last seven working days of the fourth quarter, and that it has made as many Model 3s since December 9 as it had in the more than four months of Model 3 production up to that point. Tesla said 860 Model 3s (as well as 2,520 Model S and Model X electric cars) are currently in transit to customers; they will be counted in Q1 delivery totals.

Tesla previously said it delivered 260 Model 3s in the third quarter of 2017. The first 30 were handed over to their owners in a well-publicized ceremony, but production was initially sluggish as Tesla grappled with the challenge of quickly ramping things up, a process CEO Elon Musk has called “production hell.”

The automaker said that it has made “major progress” in overcoming Model 3 production bottlenecks and that it has “slightly reduced” Model S and Model X production rates in order to shift workers to the Model 3. Nonetheless, Model S and Model X deliveries were up 9 percent from their third-quarter totals, pushing Tesla over the six-figure mark for annual deliveries for the first time in its history. Tesla delivered 103,122 cars in 2017, up from about 76,000 cars in 2016.

Tesla also announced that it was once again delaying a goal of producing 5,000 cars a week. The company said in July that it would hit that goal by the end of the year, then pushed it to the end of the first quarter of 2018. Now it’s been pushed back again, to the end of the second quarter of 2018. Tesla said it plans to “continue to focus on quality and efficiency rather than simply pushing for the highest possible volume in the shortest period of time.”

Emphasizing quality over quantity is the “right focus,” said Autotrader executive analyst Michelle Krebs, adding that “ramping up production levels with a flawed product is foolish.” But she added that Tesla may have erred in announcing such “lofty” goals before starting production.

Given that many customers don’t expect to get their cars until late 2018 or 2019, there is still time for Tesla to meet its goals, Akshay Anand, an analyst for Kelley Blue Book said, adding that if Tesla fails, it will be about more than missing production goals.

“Tesla needs to get the Model 3 right in order to succeed as a company” Anand said.

Product Review

The Ferrari Portofino is the super stallion you’ll want to drive every day

With the introduction of the Portofino, Ferrari addresses the California T’s stylistic shortcomings while improving comfort, convenience, and performance. There’s little “entry-level” about this super stallion.
Cars

Tesla ends scheduled servicing because electric cars need less maintenance

Tesla will longer offer scheduled maintenance plans, switching to an "as needed" model. This reflects the fact that electric cars need less regular maintenance than gasoline or diesel cars.
Cars

Tesla lets you skip the dealership, order a car from the comfort of your couch

Tesla has always bypassed traditional dealerships, and it has now adopted an online-only sales model that lets customers configure and order their car without leaving their couch. Here's what you need to know.
Cars

Tesla wirelessly gives the Model 3 a 5-percent increase in power

Tesla again showed the potential of its innovative over-the-air software updating system by making the Model 3 five percent more powerful via a firmware update. The Performance model gained 23 horsepower.
Cars

Fisker plans sub-$40,000 electric SUV with 300 miles of range for 2021

Fisker Inc. plans to launch an electric SUV with a base price of under $40,000, and a range of around 300 miles in 2021. The unnamed vehicle could compete with the Tesla Model Y, if it ever gets into production.
Cars

Autonomous shuttle rides coming to New York City via Optimus Ride

Workers at the Brooklyn Navy Yard in NY City will soon be able to make their way around the 300-acre industrial park in Optimus Ride's self-driving shuttles. The tech startup says it's the first trial of its kind in the state.
Product Review

2019 Volkswagen Jetta offers German refinement and tech at an affordable price

With enough tech to make villains jealous, the Volkswagen Jetta punches above its class as a forward-thinking sedan. Spacious, comfortable, and efficient, the Jetta is a refined offering. German refinement comes with a serious attitude.
Cars

Renault-Nissan-Mitsubishi group uses Microsoft cloud platform for connected cars

The Renault-Nissan-Mitsubishi Alliance is launching a new cloud platform for its cars. Based on Microsoft Azure, the Alliance Intelligent Cloud will enable features like connected services and over-the-air updates.
Cars

The 2019 Toyota C-HR gains a popular tech feature as its price comes down

Toyota has updated the C-HR, its entry-level crossover, by adding an entry-level trim level to the lineup. Every model regardless of price also comes standard with an 8.0-inch touchscreen compatible with Apple CarPlay.
Cars

The 2020 Porsche Cayenne Coupe is an exercise in form-over-function design

Porsche expanded its lineup of SUVs with a swoopier evolution of the Cayenne named Cayenne Coupe. Don't let the name fool you: it still has four doors. It stands out with a fastback-like roofline that's lower than the Cayenne's.
Product Review

Chris is the virtual co-pilot phone-obsessives need in their car

Driving while using your phone is dangerous, and often illegal. Meet Chris, the digital assistant for your car that wants to help keep your hands off your phone, and your eyes on the road.
Cars

Protect yourself and your ride with our favorite dash cams

Dashboard cameras can assist drivers in car accident claims, settle speeding ticket disputes, and even catch glimpses of incoming meteors, among other things. Here, we've compiled a list of the most noteworthy offerings available.
Cars

Tesla revives its referral program with chances to win a Roadster

Tesla has revived its referral program that ended in February because of cost pressures. This time around the perks aren't quite as diverse, though it does offer regular chances to win a Roadster or Model Y.
Cars

The go kart-like Mini Cooper will soon add zero emissions to its resume

Mini is in the final stages of developing an electric version of the Cooper. The 2020 Cooper SE will receive powertrain components from the BMW i3, including a 181-horsepower electric motor and battery technology.