Tesla has shut down its production line twice before. What remains unclear, however, is whether or not Tesla will be able to ramp up production in a timely manner as to prevent reservation holders from asking for a refund and simply picking up a vehicle elsewhere.
Morgan Stanley automotive analyst Adam Jonas, one of Teslas biggest bulls, has dropped his price target for Elon Musk's electric auto company from $376 to $291, below the company's trading price at the close of market on Monday.
Additionally, Musk also requested that employees inform him of "any specific bottlenecks" that may hinder the company from hitting the target so that he can take the necessary action to rectify the issue.
"We are making material reductions to our earnings estimates to reflect lingering manufacturing issues with the Model 3", Jonas said in a note to clients Tuesday.
Ensuring that drivers stay engaged and alert when using Autopilot is extremely important.
A US traffic safety regulator on May 2 contradicted Tesla's claim that the agency had found that its Autopilot technology significantly reduced crashes.More news: Salma Hayek speaks frankly about Harvey Weinstein and #MeToo at Cannes
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Autopilot, a form of advanced cruise control, handles some driving tasks and warns those behind the wheel they are always responsible for the vehicle's safe operation, Tesla has said.
Over the past two months, federal officials have opened investigations into at least two other crashes involving Tesla vehicles. "It is not a self-driving system", Musk said. Wait times will more than likely extend into 2020, wait times for the current Model 3 are between 12-18 months if you order today.
"It's super messed up that a Tesla crash resulting in a broken ankle is front page news and the ~40,000 people who died in U.S. auto accidents alone in past year get nearly no coverage", he tweeted. Since existing cars have the hardware installed for Autopilot, this feature will also be enabled for existing models, according to the company spokeswoman.
The NTSB said last week it was investigating a Tesla accident in Fort Lauderdale, Florida, on May 8 that killed two teenagers and injured another - the agency's fourth active probe into crashes of the company's electric vehicles.