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Tesla Model 3 Delivery Dates Delay Latest News: Suppliers Blamed for Production Problems

Tesla Model 3 is behind its delivery target for the third quarter of 2017. Suppliers are reportedly causing the production delay despite Tesla equipment being up and ready.

An analyst from Oppenheimer discussed the delay with Tesla's management, as per Barron's. Elon Musk's company fired some of these suppliers, which has since been replaced by in-house resources.

Production delays were earlier speculated to have been due to the fact that some Model 3 parts were produced by hand and not machines or equipment. Tesla, however, pinned the problem on a small number of suppliers.

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"Tesla indicated that all the production equipment for Model 3 was installed and working and that all vehicles were moving through the manufacturing line," Oppenheimer analyst Colin Rusch stated.

Only 260 Model 3 vehicles have been produced since its July launch. Tesla's original target for manufacturing was at 1,500 vehicles from July to October.

Musk once said that Tesla will be going through production hell for Model 3, hence some problems could arise. Musk took to Instagram to show a video of what exactly happens in a Tesla Model 3 production line.

Despite this, however, the company remains confident it will be able to deliver to car owners by the end of October. Tesla employees, as well as company insiders, get first dibs on the electric vehicle, while regular customers can expect their units before winter.

With most parts now done in-house, Tesla plans to manufacture 5,000 Model 3 cars weekly until the end of the year. The company will gradually increase production to 10,000 Model 3 cars weekly in 2018 until half a million vehicles are produced.

The Tesla Model 3 is a four-door sedan all-electric vehicle that can go for 220 miles (350 km). Some 455,000 Tesla Model 3s were pre-ordered when the company first announced the vehicle in 2016. Musk planned to develop the vehicle since 2007.

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