Tesla Inc(NASDAQ:TSLA) shares plummeted nearly 2.4 percent in the premarket trading session on Tuesday after the company reported that it is experiencing production hurdles in the planned ramp-up for the new Model 3 sedan.
The luxury electric vehicle maker began production of the Model 3 in July and so far it has delivered only 220 of those sedans. Overall, TSLA has produced 260 sedans in the quarter, well below the goal of 1,500. The production numbers are disappointing considering TSLA’s production target of 5,000 Model 3 units by the end of this year.
Palo Alto, California Tesla would likely face stiff competition in the near future as rival General Motors Co. is planning to launch 20 new battery electric and fuel cell cars by 2023.
Tesla shares performed well so far this year as the stock has jumped nearly 60 percent year-to-date and 22 percent over the past 6 months. The 52-week range of the stock is $178.19-$389.61. The company’s market cap is $57 billion.