Tesla is still having production issues with the Model 3. Recently I was at a Tesla office inquiring about the Model 3 and from what I was told, I would have no chance of getting it anytime soon. The best I can do I was told was to pre-order $1,000 and that will put you on the list behind who knows how many others are waiting. So it's a $1K waiting list. Now the reason for this delay has nothing to do with a shortage in materials. According to many engineers I have talked to regarding this, it is because Tesla is having problems "WELDING STEEL". Steel is the primary material in the more economical Model 3, while Tesla uses aluminum frames for their other cars like the Model S and Model X. Tesla has streamlined an efficient process for manufacturing with aluminum, but steel is another issue. Welding quality is very important to guarantee the safety and quality of the chassis in a car and it seems Tesla is having some technical difficulty with the spot welding process. If not properly done, the car could suffer later from damage caused by poor welding that leads to rattling and squeaking as the vehicle ages. This is the "production hell" Elon Musk talked about, but did not specifically say it was due to welding steel. The other problem with delays is production costs, which Tesla could absorb in the short term, but the competition is catching up. Other #EV automakers could entice customers away from Tesla and provide higher quality, but more affordable EV. The Tesla Model 3 will then be less in demand and that affects investor's money.
