Tesla is expecting to ramp up its production to 1,500 Model 3 a week.
After Tesla Motors’ announcement that its mass market Model 3 sedan was facing production bottlenecks, its shares slipped by 2% before the closing of the bell on Tuesday.
Tesla Motors had begun the production of the Model 3 in July this year and has so far delivered 220 sedans and has produced 260 during the quarter against a target of 1,500.
By the end of 2017, Tesla’s production goal is to produce 5,000 Model 3s a week. According to analysts at Cowen and Co, Tesla’s production levels puts at risk is slated target.
The brokerage has affirmed its “underperform” rating on the stock.
Moreover, its Model 3, is set to face increased competition from rivals, including General Motors Co, which on Monday outlined its plans to add twenty new electric battery and fuel cell vehicles to its global lineup by 2023.