The world is still aglow after the launch of the Model 3, a prototype EV that has thus far earned somewhere north of 276,000 reservations after just a few days of existence in the public eye. However, less than a week later, Tesla is advising some disappointing Q1 production numbers from the company's current cars, Models S and X.
The company delivered 12,420 Model S sedans and just 2,400 Model X SUVs in Q1 of 2016, a period ending on March 31. The company blames "severe Model X supplier parts shortages" for much of that shortfall, but intriguingly adds that "Tesla's hubris in adding far too much new technology" to the SUV also played a part.
Of course, the question on everyone's mind is what this means about the Model 3. As Tesla's first mass-market car, priced at just $35,000 to start, demand was always going to be high. To handle that, Tesla is constructing a massive battery Gigafactory in Reno, Nevada, and plans to ramp up at its massive Fremont, CA production facility. At its peak, when it was a joint-owned facility shared by GM and Toyota, it was producing over 400,000 cars per year.
Tesla Model 3 final production model unveiledSee all photos
In the short-term, things are looking up for Model X production. The company's release indicated that 750 Model X SUVs were produced in the last full week of March, which will be at least somewhat encouraging for the thousands still holding reservations for that gullwinged creation.
Tesla's shares ended the day up $9.40 to $246.99.