During their first quarter presentation, Tesla announced that it would be accelerating plans to produce 500,000 vehicles from 2020 to 2018. This in part due to the demand for the recently announced Model 3. This is an ambitious goal to say in the least and one that could haunt Tesla if they don't meet. Already, they might have hit a roadblock.
Reuters reports that Tesla hasn't finalized the design of its new Model 3. During a call with analysts last week, CEO Elon Musk said design is still being worked on. Musk also said it would take another six to nine weeks for various engineering decisions to be finalized. No reason was given as to why Tesla hasn't finalized the design yet.
This affects a number of key parts to getting the Model 3 to production such as the design for parts, finding suppliers, and plans for manufacturing.
“We may experience delays in realizing our projected timelines and cost and volume targets for the production, launch, and ramp of our Model 3 vehicle,” the company wrote in an SEC filing.
"Finalizing the design work, and lining up the suppliers and launching in one and a half years seems not possible," said Barclays analyst Brian Johnson.