Tesla is struggling with Model 3 production because of delays at its massive Gigafactory (TSLA)

pulse

October 31, 2017 2:47 PM

Panasonic CEO Kazuhiro Tsuga said delays on Tesla's Gigafactory production line have slowed Model 3 output.

Panasonic assembles batteries at Tesla's Gigafactory in Sparks, Nevada.
Panasonic CEO Kazuhiro Tsuga said Tuesday that there have been delays to automating the battery production line at the Gigafactory, slowing Model 3 output.
Tesla only produced 260 Model 3 sedans in the third quarter; it had targeted 1,500 vehicles for September alone.

Panasonic CEO Kazuhiro Tsuga gave everyone a better understanding of why Tesla missed its target for Model 3 production in the third quarter.

Tsuga said during an earnings briefing that there have been delays to automating the battery production line at Tesla's Gigafactory, which has slowed Model 3 output, Reuters' first reported. Some of the battery packs have had to be assembled by hand, according to the report.

Panasonic is a partner of Tesla, helping assemble batteries at the electric automaker's Gigafactory in Sparks, Nevada.

"This process [for battery packs] will be soon automated, and then the number of vehicles to be produced will rise sharply," Tsuga said, according to Reuters. He didn't specify how far behind schedule Model 3 production is at this point.

Tesla will report fourth-quarter earnings on Wednesday. A Tesla representative declined to comment on the report.

Tesla CEO Elon Musk said

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