(US NEWS) – One of the biggest reasons Tesla Inc (Nasdaq: TSLA) stock is down 15.9 percent in the past three months is the company's inability to hit its Model 3 production target of 5,000 vehicles per week. Tesla said in early May that it still expects to reach that 5,000 per-week rate by the end of June, but Needham analyst Rajvindra Gill now projects that Tesla won't hit that target until sometime in the second quarter of 2019.
Tesla originally said it would produce Model 3s at a rate of 5,000 per week by the end of 2017. That target was then bumped to the end of the first quarter and then again to the end of the second quarter. Tesla has blamed production bottlenecks for its inability to hit its targets, and Gill says those production issues are far from resolved.
"Our comprehensive checks on Model 3 production point to manufacturing problems, particularly at the battery cell level, module assembly and factory automation lines," he says.
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