Source: Tesla’s “Pilot” Model 3 Body Line Still In Development Near Detroit

Photos, apparently of a Model 3 “pilot team” in “Area 51,” were subsequently deleted by a now-private Instagram account.

Three months ago Tesla CEO Elon Musk tweeted that production of the new Model 3 in “Aug[ust] should be 100 cars and Sept[ember] above 1500.” But over the following quarter Tesla ended up delivering only 220 of its new more-affordable electric cars, or just 15% of Musk’s guidance. Though Tesla’s delivery press release didn’t identify the cause for this dramatic miss, it did state that

“It is important to emphasize that there are no fundamental issues with the Model 3 production or supply chain. We understand what needs to be fixed and we are confident of addressing the manufacturing bottleneck issues in the near-term.”

What does and does not constitute a “fundamental issue” with the Model 3 production ramp is open to debate, but a source tells Daily Kanban that elements of the Model 3 body line are still in development at the Michigan-based supplier Thai Summit America and not yet installed at Tesla’s Fremont facility.

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Tesla Plans Long-Term Expansion Of Model S & Model X Capacity

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Throughout its history, Tesla has always been a company that is looking ahead. Even when the company was hand-assembling tiny volumes of Roadsters, CEO Elon Musk’s “Top Secret Master Plan pointed the way towards lower prices and higher volume. Now, with two vehicles on the market and annual production volumes moving towards the six-figure mark, Musk told analysts on Tesla’s most recent earnings call that lower-cost, higher-volume Model 3 is “overwhelmingly our focus.” As for the Model S and Model X, Tesla’s so-called “Gen 2 vehicles,” Musk says “things feel really quite stable.”

That doesn’t mean that Tesla is done investing in its current lineup, however. In fact, the electric automaker’s latest approved application for sales and use tax exclusion (STE) from the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) [PDF of CAEATFA’s staff report here] reveals that it is actually spending nearly half a billion dollars in order to expand the production capacity of its Gen 2 vehicles to 195,000 units per year by approximately 2021.

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