Tesla stock traded down about 2.2% in Tuesday's premarket, at $333.87 in a 52-week range of $178.19 to $389.61.
Tesla's October 2 investor letter blamed Model 3 delays on "production bottlenecks" from manufacturing subsystems taking longer to activate than expected.
The Model 3 has become Tesla's most anticipated auto, garnering hundreds of thousands of preorders due to its promise of a mid-30K base price and a range well over 200 miles, not to mention premium vehicle features and style.More news: With Del Rio injured, Gators ride running backs to victory over Vanderbilt
Tesla says it is confident of addressing the manufacturing bottlenecks that have hampered production of its competitively-priced Model 3 electric vehicle.
On the importance of this point, Tesla is spot-on.
"Looks like we can reach 20,000 Model 3 cars per month by Dec", Musk said on Twitter in July, when announcing deliveries of the first 30 of the highly-anticipated cars. At the high end, the Model 3 goes for $59,000. It began its production of Model 3 during July that starts at a price of $35,000, which is half the Model S starting price. However, Tesla's Model X launch flub didn't really make sense. "We expect Model 3 to have a breakout year in 2019".
Meanwhile, Tesla says it's still set to deliver 100,000 Model S and Model X units this 2017. In Q3 of 2017, the company was able to deliver 14,065 Model S vehicles and 11,865 Model X vehicles-numbers that are largely similar to (although slightly more than) what we saw in Q2 and Q1 of this year.More news: Google Ends "First Click Free" Program
"Continued challenges in executing on the Model 3 ramp would be disastrous for the company given the competition that is expected for 2019 and beyond", Jeffrey Osborne, an analyst at Cowen & Co., wrote in a report to clients.
On Friday, Tesla and SpaceX CEO Elon Musk said that the company was halfway done building the battery bank that will become the world's biggest battery once it's complete. The market would rather see the Model 3 produced well than have it rushed out quickly to meet delivery targets, said Morgan Stanley analyst Adam Jonas.
In August, Tesla expected to be producing 5,000 a week by the end of December.More news: Iran and Iraq to hold joint border drills