Shares of Tesla are trading down 2.68% at $US332.70 on Tuesday after the company missed its ambitious Model 3 production target by a mile.
After the bell on Monday, Tesla released production numbers for the third quarter. The company produced 25,336 vehicles in total, but only 260 of those were Model 3s.
Tesla had previously said it wanted to produce 1,500 Model 3s in September alone and 20,000 a month by the end of the year. The company has around 450,000 preorders for the vehicle, and ordering a new Model 3 today would likely come with a delivery date of late 2018.
In a letter to investors on Monday, the company said it was behind schedule due to production bottlenecks. Musk had previously said it would be “hell” for the six months following the vehicle’s announcement.
“It is important to emphasise that there are no fundamental issues with the Model 3 production or supply chain,” Tesla said in a letter to investors. “We understand what needs to be fixed.”
As Tesla struggles to push out its first mass-marketed car, its rivals are ramping up the competition. GM said on Monday that it wants to eventually sell electric cars exclusively. The company hopes to have 20 fully electric cars by 2023.
A note from Deutsche Bank on Monday also said that GM is close to delivering a fully-autonomous car that could handle urban driving without a human backup driver. The car could be delivered in “quarters, not years,” according to the bank. Major automakers are set to release their sales numbers on Tuesday and are expected to have reversed the downtrend from recent reports.
Tesla shares are up 56.15% this year.