Tesla Misses First-Quarter Production Goal for Model 3

Tesla Inc. says it pushed its weekly output of Model 3 electric sedans slightly above 2,000 units at the end of March, short of its downwardly adjusted 2,500-unit target.

The company reports it made a record 9,800 Model 3s in the first quarter. Retail deliveries reached about 30,000 units in the period.

Tesla says it has now resolved bottlenecks that hampered output for months. The company also insists that last week’s 2,000-unit production rate is sustainable. The company reiterates that it aims to push weekly output to 5,000 units by about the end of June.

Tesla also notes that its current output of Model 3 cars now equals the combined output of its two other cars, the Model S and Model X. It emphasizes that it took nine months to reach the former number and six years to achieve the latter.

Investors and analysts have been watching Tesla production numbers closely. Many worry about the company’s ability to crank up production of the Model 3 fast enough to propel the company into sustainable profitability.

But more bullish observers point out that demand for the $35,000 Model 3 remains very strong. They concede that Tesla has always struggled to meet its own aggressive production targets, but they note the company eventually does so.

The company’s stock price, which fell 19% in March to end the month at $266, opened today at $269 and closed at $267.