Electric car maker Tesla Inc. has again fallen short of production goals for its new Model 3 sedan.
The Palo Alto, California-based company made 2,425 Model 3s in the fourth quarter. That’s only a fraction of the 20,000 per month that CEO Elon Musk once promised.
But the company exceeded its overall sales targets, delivering 101,312 Model S sedans and Model X SUVs in 2017, up 33 percent over 2016.
Tesla says it made significant progress in reducing production bottlenecks toward the end of the fourth quarter. It now expects to be making 20,000 Model 3s per month at the end of the second quarter.
More than 500,000 potential buyers on the waiting list for the Model 3, which is its first lower-cost, high-volume car.