"This should come as no surprise", said Michelle Krebs, an analyst with Autotrader.
With its enormous footprint and production capabilities, the Gigafactory in particular will be vital in scaling up the Model 3's numbers.
The stock fell about 1 percent to $337.93 in after-hours trading. "We believe this likely puts downward risk to the company's communicated S-curve to the Model 3 production ramp", Tamberrino wrote in a note to clients Tuesday.
For much of this year, Musk has referred to (but not entirely explained) an "exponential growth" strategy for ramping up the Model 3 assembly lines, where capital from both investors and sales would be poured into the car's production ahead of other priorities. Tesla has disrupted the global auto industry with its stylish electric cars, but it now faces growing competition from the likes of Daimler AG, Volkswagen AG and General Motors Co.
By 2018, Tesla says it will make 500,000 of all of its cars combined per year - up from the almost 80,000 it made last year.
But that's not necessarily a bad approach. The company predicted in August that it would produce more than 1,500 before the end of the fourth quarter.
"We continue to see downside to Factset consensus".
Given a somewhat patchy history when it comes to hitting targets or earnings forecasts, this will no doubt come as good news to many Tesla investors - although, to be fair, they rarely display noticeable concern about such things. It did not reaffirm or change that guidance Monday. Previously, it had expected to sell slightly more of these in the second half than the first, implying maybe 95,000 for the year as a whole. "We comprehend what has to be repaired and we are confident of dealing with the manufacturing bottleneck problems in the near term". Recently, they were off 1.3 percent at $337.06.
Michael LaChapelle, a portfolio manager at FoxForge Capital, which has a short position in Tesla, said he's surprised the market reaction has been so muted.
As energymanagertoday.com reported back in July, businesses in South Australia may find themselves plagued by fewer weather-caused blackout issues, now that Tesla has won a government bid to build what would be the world's largest lithium-ion battery.