Tesla’s third quarter 2017 update had some positive numbers, but there were some concerns as well. Deliveries in Q3 rose 4.5% year-on-year, and 26,150 units is also 17.7% up on the previous quarter. The total figure included 14,065 units of the Model S and 11,865 of the Model X.

What about the much hyped Model 3? Production of Tesla’s entry-level sedan for the masses started in July, and the Palo Alto-based company produced a total of 260 units in the quarter, delivering just 220 of those, Reuters reports.

Tesla admitted that it is facing production bottlenecks for the Model 3, and is behind an ambitious schedule. “It is important to emphasise that there are no fundamental issues with the Model 3 production or supply chain. We understand what needs to be fixed and we are confident of addressing the manufacturing bottleneck issues in the near term,” Tesla said in a statement.

The original plan was “to achieve a rate of 5,000 Model 3 vehicles per week by the end of 2017,” according to the EV specialist’s second-quarter financial report. Tesla also previously said that it expects at some point in 2018 to further ramp to a rate of “10,000 Model 3 vehicles per week,” and an annual production rate in excess of 500,000 vehicles.

Tesla said yesterday that a handful of systems at its Fremont plant in California and its battery factory in Reno, Nevada, “have taken longer to activate than expected.”

However, Elon Musk’s company says that it was on track to deliver around 100,000 units of the Model S and X this year. Deliveries of the two models would have been even higher in Q3 – 4,820 units were in transit to customers at the end of quarter and would be added into Q4 figures.

The Model 3 has a bulging order book. Priced from $35,000 (RM148,330), half of the Model S starting price, it has a range of 354 km, and can sprint 0-100 km/h in 5.6 seconds before reaching a top speed of 209 km/h. Another $9,000 (RM38,142) adds a long range battery that pushes range to 499 km and cuts the 0-100 km/h time to 5.1 seconds. Top speed is 225 km/h here.

Model 3 owners will have to pay to use Tesla’s Supercharger network though, whereas the service is free for the first 400 kWh per year with the Model S and Model X. Also, the headline entry price excludes many options.