Production bottlenecks slowed production of Tesla‘s much anticipated Model 3, the company reported Monday.

During the third quarter, Tesla produced 260 Model 3 vehicles and delivered 220 of them.

“Although the vast majority of manufacturing subsystems at both our California car plant and our Nevada Gigafactory are able to operate at high rate, a handful have taken longer to activate than expected,” the company said in a statement.

The Model 3 is Tesla’s first electric car aimed at the mass market. Tesla delivered its first Model 3 cars in July to a great deal of fanfare.

The company said there are no “fundamental issues” with the Model 3’s 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,” the company said in a statement.

Shares of Tesla were down 1.5 percent after-hours.

The news about the Model 3 came as Tesla offered its third-quarter sales report. During the quarter, Tesla delivered 26,150 vehicles, up 4.5 percent from the same time last year.

Of the total, 14,065 were Model S, 11,865 were Model X, and 220 were Model 3.

The company said it expects to deliver about 100,000 Model S and X vehicles in 2017. That would represent a 31 percent increase over last year.

At the end of the quarter, about 4,820 Model S and X vehicles were in transit. They will be counted in next quarter’s numbers.

In the quarter, 25,336 vehicles were produced.

Source: Tech CNBC
Tesla Model 3 deliveries lower than expected because of 'production bottlenecks'