Although the Model 3 premiered in the middle of 2017 as planned, Tesla failed to meet its original production targets for the entry-level electric sedan. In the quarter after the car’s global premiere, just 266 units were delivered to customers. In the fourth quarter, only 1550 examples were delivered. By the end of Q1 2018, Tesla anticipates it will be churning out 2500 Model 3s per week and 5000 per week by the end of Q2 2018.
In a letter issued to investors, Tesla suggested that even these projections may not be achieved.
“It is important to note that, while these are the levels we are focused on hitting and we have plans in place to achieve them, our prior experience on the Model 3 ramp has demonstrated the difficulty of accurately forecasting specific production rates at specific points in time.”
Despite its sustained financial losses, the automaker sees light at the end of the tunnel. Speaking on an earnings call, Elon Musk said he expects Tesla to be profitable by the stringent Generally Accepted Accounting Principles this year.