Tesla Model 3 deliveries likely to be slow: KeyBanc

About 5000 Tesla Model 3 sedans are likely to be delivered in the fourth quarter, investment bank KeyBanc Capital Markets analysts say, well below the bank’s 15,000 estimate.

That’s prompted overseas media to speculate whether the Californian electric carmaker has overcome its production problems, the car expected to be almost half the cost of its previous models.

KeyBanc analysts base their projections on conversations with sales people at 18 US dealerships.

They say California outlets are selling about 10 a week on average, while those outside the state are closer to six a week.

Tesla made 260 Model 3s in the third quarter against its own target of 1500 plus, due to “production bottlenecks”.

The company says it expects to build 5000 Model 3s weekly late in the first quarter of 2018 after initially targeting December.

More than 500,000 customers have made a refundable deposit.

KeyBanc says consumer reviews and response remain favourable.

If Tesla Model 3 output reaches full strength by May, automotive data analyst Edmunds.com says plug-in cars will likely outsell traditional hybrids such as the Toyota Prius by the end of 2018 in the US.

Tesla also plans to produce a new electric Semi truck in 2019, a super-fast new Roadster in 2020, begin production of a Model Y compact SUV as early as mid-2019 and unveil a pickup truck by the end of next year.