The third quarter delivery numbers of Tesla Motors were good as well as bad. For the first time in its history, the U.S.-based automaker is on pace to sell 100k cars in a year. However, it is not in pace with the production of its new mid-stream market Model 3 sedan.

Three reasons why Tesla is struggling to build its Model 3

Model 3 is the affordable electric car that is supposed to bring the automaker’s EVs to more people across the world and begin the commencement of the end for fuel and gas-powered cars. The electric car making giant said that it would produce over 1.5K Model 3 EVs in September but it managed to produce less than 300 cars since the EV was released in July – which is less 80% of what it promised.

For the automaker, getting to 20K in monthly production seems like an impossible task now. In addition to this, the prediction of Elon Musk that the automaker will be producing 500k cars yearly by the end of next year seems like a hopeless expectation as well. In 2017, the stock of the automaker went up 65% even after similar kind of news surrounding it.

What is the main issue for the automaker is why it is unable to produce as many cars as it promised to! Here are some reasons that news site Business Insider reported –

The Price – Making Model 3 available at the cost of $35,000 is not an easy task for the U.S. based automaker. The car making giant designed the Model 3 to be easier to build than its other EVs – the Model X and Model S – but the car is still a lot more difficult to build in comparison to its rivals like the Nissan Leaf and the Chevy Bolt.

Other car maker are adapting their existing gas-car platform to build the electric cars that can build easily, market quickly and are priced below $40,000.

Mass Production of Model 3 hasn’t started yet – When it comes to the complete auto-industry, the electric car making giant is quite small. The history of its EV production is not hidden from anyone. Delayed productions and deliveries are common for the automaker. Also, there are issues of changes after production, for example, its Model X went through a complete rear-seat and rear-door redesign just few months before the car released in 2015.

Loyal customers – Probably no other automaker enjoys as much loyalty from its customers as the automaker enjoys from its customers. Even after constant delays in production and deliveries, its customers have stayed patient. The brand equity of the automaker is possibly its most valuable asset. The Short sellers are not the fans of the automaker and several analysts have claimed that Tesla is all bark and no bite, but others – who actually matter because they buy the car – love the car making giant.

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