In 2018, it hopes to increase production of the vehicle to over 10,000 a week and have an annual target of half a million Model 3s being produced.
While the miss is early on in Tesla's Model 3 manufacturing growth process, it could be an indicator of struggles to come.
"It is important to emphasize that there are no fundamental issues with the Model 3 production or supply chain", the company continued. In July, it started production of the Model 3, which begins at $35,000 - half the starting cost of the Model S.
That said, while the Model 3 production has not gone up to snuff, existing manufacture of Tesla's previous models did deliver in numbers.More news: The Coffee Aficionados Guide To National Coffee Day in Alabama
That's well short of the target of 1,500 that Tesla had set.
Musk and his employees know they have a hard task ahead of him.
"But you guys know this; you're veterans". Before the end of next year, Tesla expects Model 3 production to achieve a weekly rate of 10,000 units. Panasonic is also equipment and technology provider to Tesla-SolarCity's PV module manufacturing lines, pilots of which are being established at a second "Gigafactory" location in Buffalo, New York. Tesla has offered value for money in Model 3 and one major drawback for Model 3 is the paid access to superchargers. "Automotive gross margin estimates for the quarter given worse utilization on Model 3 and likely lower margin Model S/X sales", he wrote. Having followed Tesla Launches in the past we wish the company luck. The total number of Model Xs delivered throughout Q3 was 11,865, closing the gap on the Model S sedan which is still on top with 14,065.
Overall Tesla expects to deliver 100,000 Model S and Model X cars in 2017. It shows a modern looking truck which is quite similar to the teaser image Tesla had released in April. While competition in the market is expected to heat up in the medium-term, with luxury brands such as Volvo, Mercedes, and Porsche all doubling down on their EV plans, Tesla's premium lineup may still have some scope for growth.