- Tesla’s partner, Panasonic, says the automaker has figured out its production problems with the Model 3.
- The company should be able to make vehicles much faster now.
- Tesla closed up 3.28% on Tuesday.
Tesla shares jumped 3.28% on Tuesday to $330.94 a piece after the company’s battery production partner said that it has solved its production bottleneck.
On the company’s earnings call, Panasonic’s CEO said the production bottlenecks that previously held back the car maker are understood and that the number of vehicles Tesla can manufacture would “rise sharply,” according to Reuters.
Tesla and Panasonic are partners in the Gigafactory, with the latter helping Tesla manufacture the batteries for its Model 3 vehicles. Some parts of the battery production process had to be completed by hand, which hobbled production of the company’s first mass-market vehicle, Reuters says. Tesla produced just 260 Model 3s in the third quarter when it had been targeting 1,500 for September alone.
Tesla has previously said that production was being held up by a bottleneck, but Panasonic’s CEO confirmed the bottleneck was located at the companies’ Gigafactory.
Tesla is up 53.29% this year and reports its earnings after the bell on Wednesday. Wall Street is expecting an adjusted loss of $2.23 per share on revenues of $2.928 billion, according to data from Bloomberg.