Hundreds of thousands of people have pre-ordered the Model 3 and are eagerly awaiting delivery.
Tesla has been working with Shanghai's government since past year to explore assembling cars in China, but has yet to clinch a deal. The company says it expects to make 2,000 Model 3s over the next week.
But there was good news in Tesla's announcement on Tuesday. The Bolt has been outselling the Tesla sedan in recent months and parent General Motors recently announced it will increase production in the coming months.
A Tesla spokeswoman based in Beijing wasn't immediately available to comment. Tesla stocks have fallen 15 percent since the start of the year.
Tesla ended up producing 289 Model 3s per day in the last week of March.
Almost a year later, Musk is back to factory living. "Without fresh funds, it's tough to see how Tesla achieves the spectacular growth still priced into its shares".
Analysts polled by FactSet had expected 38,000 vehicles delivered in the quarter, of which 12,300 were Model 3 sedans. In February, Musk said Tesla would attempt the trip in another three to six months.
"Our initial customer satisfaction score for Model 3 quality is above 93 percent", Tesla said, "which is the highest score in Tesla's history".
Tesla Motors, Inc. (NASDAQ:TSLA) now has a Weekly Volatility of 7.50% percent while its Monthly Volatility is at 4.35% percent.
Tesla has hit an all-time high for production last quarter.
China's announcement adds to a tough past few weeks for chief executive Elon Musk and Tesla investors, with a string of bad news hurting the company's shares. And it issued its largest recall to date, warning about 123,000 Model S drivers that their car's power steering might fail. Musk's dark-humored April Fool's joke featured an announcement saying that Tesla has gone bankrupt. Right now, tho, better to divide & conquer, so I'm back to sleeping at factory. Auto biz is hell... An additional duty would further relegate Tesla into a niche marque only afforded by the most wealthy. Although the expected rate deadline of Model 3 production for the first quarter has been missed - having produced only 2,020 of the affordable sedan vs. 2,500 expected - the vehicle has been reported to officially be the bestselling electric auto in the US (Electrek).
But Tesla didn't stop there.
When Tesla launched the Model 3 last summer, CEO Elon Musk warned his factory workers that the race to scale up its manufacturing capacity and meet massive demand for the most anticipated vehicle ever would plunge them into "production hell".
Nonetheless, Musk was typically upbeat about the latest numbers, promising production will soon accelerate so rapidly it may soon "exceed even that of Ford and the Model T".