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Posts Tagged ‘Model 3 production problems’

Tesla Dismisses Model 3 Production Shortfall and Investors Appear to Agree

Production accelerating so fast it may soon “exceed even that of Ford and the Model T.”

by on Apr.03, 2018

Tesla's Elon Musk told investors the company will be closing in on higher production numbers for the Model 3.

Tesla on Tuesday confirmed that it again fell short of its production target for the much-delayed Model 3 sedan, though it also promised that the “production rate will climb rapidly” from the 2,000 battery-cars assembled each week in late March to 5,000 by the end of the second quarter.

Delays with the ramp-up of the Model 3, Tesla’s first mainstream offering, have been a nightmare for the California-based carmaker, plunging its first-quarter earnings deeply into the red and raising the specter of having to raise new equity to fund its ongoing operations. But after a sharp plunge in its stock over the past month, investors appear to be taking solace in the latest production figures, Tesla shares surging by more than 3% in late morning trading.

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Tesla played up the positive in a statement Tuesday, despite missing its production target. It cited “the progress made thus far” as “laying the groundwork” for a strong third quarter. “As a result, Tesla does not require an equity or debt raise this year, apart from standard credit lines.” (more…)

Investors Hammer Tesla as Model 3 Production Hits “Bottlenecks”

Overall 3Q production sets record.

by on Oct.03, 2017

Tesla's CEO Elon Musk reported the company is having some production issues, or bottlenecks, with its new Model 3.

Tesla sales hit an all-time record during the third quarter, but what caught the eye of nervous investors was the severe shortfall in production of the company’s critical new Model 3 battery sedan.

All told, Tesla delivered 26,150 vehicles during the July to September quarter. But that included just 260 of the new Model 3 sedans, well below the 1,500 Tesla had originally forecast due to what the automaker described as “production bottlenecks.”

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Investors responded to the news by driving down Tesla shares by as much as 2% Tuesday morning. It didn’t help that Tesla has gotten yet another poor review from Wall Street. Researchers at Cowen and Co. on Monday warned that Tesla stock is likely to “underperform.” (more…)