Tesla’s Model 3 Production Deadline Hangs on Shipping Equipment from Germany

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Tesla's Model 3 Production Deadline Hangs on Shipping Equipment from Germany

13 Feb 2018, 13:00 UTC · by Vlad Mitrache
/ Home / News / Industry

4 photos The Tesla Model 3 has had a rough start in life by any standards, and the fact all eyes were on it sure didn't make it any easier for anyone involved in the process.
Elon Musk admitted to suffering from a case of depression during the time his company was struggling to get out of what it had called "production hell," but that was to be expected considering he neglected sleep to work side by side with the rest of the team.
The official stance now is that Tesla is out of the woods despite failing to meet its production deadlines after pushing them back several times. Right now it's gunning for 2,500 units a week by the end of the first quarter (that would be March 31) and double that by the end of the second quarter.
In the meantime, the company has just come off the worst quarter in its history regarding losses, which has forced the decision of postponing the launch of the base Model 3, the one with the 200-mile range and $35,000 entry price, until the end of the year. The slower than anticipated production is already hampering Tesla's income, so rolling out a vehicle with a much lower profit margin wouldn't be a wise choice.
Now, though, we hear the 2,500 units for the end of March target might be in danger as well. The Gigafactory plant in Reno where the battery cells and modules for the Model 3 are being built is missing a key component of its lineup if the goal is to be met.
The automated system for module production is currently sitting at its German subsidiary Grohmann Automation, some 5,350 miles and an ocean away from where it should be. The good news is everything is working, the bad news is it needs to be taken apart, transported, and put back together, all under the pressure of the end of Q1 deadline.
Here it is in Elon Musk's words, during his conference call with financial analysts: "That's got to be disassembled, brought over to the Gigafactory, and re-assembled and then brought into operation at the Gigafactory. It's not a question of whether it works or not. It's just a question of disassembly, transport, and reassembly,"

It looks like Tesla is playing it dangerously close once again, and it will be interesting to see the impact on its shares value if the deadlines aren't met for the umpteenth time. Because, as far as we know, there aren't any rocket launches planned just before March 31, right?