Four modules are packaged into an aluminum case to form a Model 3 battery pack. The combined complexity of module design and its automated manufacturing process has taken this line longer to ramp than expected. The biggest challenge is that the first two zones of a four zone process, key elements of which were done by manufacturing systems suppliers, had to be taken over and significantly redesigned by Tesla.

We have redirected our best engineering talent to fine-tune the automated processes and related robotic programming, and we are confident that throughput will increase substantially in upcoming weeks and ultimately be capable of production rates significantly greater than the original specification.

—Tesla Motors

Tesla also noted that bringing the high level of automation in the Model 3 production process online is challenging in the early stages.

Nevertheless, Tesla said that several manufacturing lines, such as drive unit, seat assembly, paint shop and stamping, have demonstrated a manufacturing ability in excess of 1,000 units per week during burst builds of short duration.

Other lines, such as battery pack assembly, body shop welding and final vehicle assembly, have demonstrated burst builds of about 500 units per week and are ramping up quickly.

Cell production at the Gigafactory also continues to ramp.

Tesla will further update the progress on Model 3 production when it relases Q4 2017 figures in January.

Financial results. The company posted a Q3 2017 loss of $619.4 million—its largest quarterly loss yet—compared with a product of $21.9 million in Q3 2016.

Revenue was up 30% to $2.98 billion. Tesla delivered 26,137 vehicles in the third quarter, up 4.5% year-on-year.

The company said that it received record net orders for Model S and X in Q3, and that global net reservations for the Model 3 continued to grow “significantly”.