Tesla Inc. postponed the production target of its Model 3 sedan on Wednesday. This marked the second time for delaying target, claiming there had been major progress in prevailing over obstacles during manufacturing.
The electric vehicle manufacturer Tesla targeted to build 2,500 Model 3 vehicles per week by the end of March 2018. However, it now planned to produce 5,000 vehicles per week by the end of June 2018.
The postpone in target resulted in dive of shares by 2 percent in the after-market trading. The Model 3 would be significant for the success of Tesla in the long run as it is an affordable car and will consolidate its leadership status in the electric vehicle market in coming years.
Manufacturing the car effectively and delivering it on time had been of utmost priority for the firm as it faces the problem of cash burn. Delay would result in cancellation of orders by reservation-holders.
The U.S. electric car maker set the target of 5,000 vehicles per week in December. However, it delayed the target to the end of March 2018. The firm outlined its manufacturing rate had grew considerably in spite of delays in targets.
“In the last seven working days of the quarter, we made 793 Model 3s, and in the last few days, we hit a production rate on each of our manufacturing lines that extrapolates to over 1,000 Model 3s per week,” the company said in a statement.
Tesla outlined it received nearly 500,000 reservations for Model 3 in August and confirmed that demand was in full swing.