Tesla is poised to sell 100,000 vehicles per year according to a report by Business Insider. That said, the Model 3 sedan is supposed to make electric cars more accessible and affordable for potential buyers. Tesla stated that it would manufacture 1,500 of these vehicles in September, but produced fewer than 300 units since July. Manufacturing 20,000 units in December seems like an impossible task. The CEO of Tesla, Elon Musk, predicted that the company would produce 500,000 vehicles per year in 2018, but that may be a tall order.
People have faith in Tesla
According to a report by Business Insider, there are half a million preorders for the Model 3, which could go unfulfilled for many years, creating serious problems for the manufacturer of electric vehicles. The market is calm despite the potential threat and Tesla has seen an increase in its market value because the price of its stock has increased by 65 percent in 2017. The electric car company has to make an effort to increase vehicle production and not disappoint customers.
A different type of company
Tesla has a reputation of biting off more than they can chew at times, but the company has been forgiven by investors and consumers because they know that it's not a typical car company.
This is not a traditional company like General Motors, so, the market is not as worried about it. According to a report by Business Insider, the company's stock increased more than 1,200 percent since 2010 despite Tesla not seeing much profit
A new vehicle
Another reason is that the Model 3 is still a new vehicle, so, the company is unable to produce this car in massive quantities.
Tesla has been good manufacturing the expensive Model S sedan and Model SUV, but building a cheaper car is still a challenge for the company. Tesla is still in the learning process of manufacturing cheap cars, the company will need some time to become more familiar with this. Tesla is still a small company if we compare it with other car makers.
More simple?
Another reason is that the Model 3 looks more simple than the Model S and the Model X, but is it really this way? Compared with electric cars such as the Nissan Leaf and the Chevy Bolt, there is a lot of clean slate to the newest Tesla. The company run by Elon Musk has eliminated a lot of dashboard instrumentation with the Model 3, going for something very simple. It doesn't necessarily make the things easier, but Tesla's plan to simplify may give good results in the long term.
