Tesla sees record quarterly loss

Dianna Christensen
November 2, 2017

For months, Tesla's forecast a production rate of 5,000 Model 3 electric sedans a week by the end of December.

The stock fell 4.3% in after-hours trading.

"While we continue to make significant progress each week in fixing Model 3 bottlenecks, the nature of manufacturing challenges during a ramp such as this makes it hard to predict exactly how long it will take for all bottlenecks to be cleared or when new ones will appear", tips Tesla.

Tesla, Inc, formerly Tesla Motors, Inc, designs, develops, manufactures and sells fully electric vehicles, and energy storage systems, as well as installs, operates and maintains solar and energy storage products. At least one lawsuit has been filed by investors.

Meanwhile, the production ramp-up has been expensive, pushing Tesla to its worst-ever quarterly loss in the third quarter, at $619 million.

Long the darling of Wall Street, Tesla shares have radically outperformed much of the market, and especially the domestic auto industry, this year. Jefferies Group LLC lowered Tesla from an in-line rating to an underperform rating and reduced their price objective for the stock from $312.00 to $240.00 in a research note on Friday, October 27th. The trick is to make the process more automated, which will allow the company to produce more vehicles at a lower cost than more traditional automakers. "As we've always acknowledged, it will take time to fine-tune the line for higher volumes".

Eagles trade for Miami running back Jay Ajayi
Instead, Miami's offense has been bad this season, and the Dolphins are changing their approach. Ajayi , 24, rushed for 1,272 yards and averaged 4.9 yards per carry last season.

Shots Fired In Lower Manhattan Was 'Absolutely An Attack' Witness Says
The incident occurred near the intersection of Chambers Street around 3 p.m., officials said. President Donald Trump has been briefed on the incident, the White House said.

'I'm just like you': Rose McGowan gives rousing speech at Women's Convention
While speaking with the Times , McGowan said she thought she could at least get $3 million out of the producer. On Friday, McGowan said because Hollywood is male-dominated, "we are given one view".

Given this, Tesla said it was now targetting production of 5,000 Model 3 cars a week by the end of March, instead of by the end of this year.

How quickly it will be able to resolve those problem is far from uncertain, and a new report from automotive analysts at UBS warned this week that, "competing EVs are coming, and a long delay could reduce (Tesla's) market share opportunity".

With a simpler, streamlined designed, the Model 3 was created to make the manufacturing process easier. Piper Jaffray Companies set a $386.00 price objective on shares of Tesla and gave the stock a buy rating in a research note on Monday, October 16th.

Despite the production woes, Tesla has still had a phenomenal year in terms of stock performance. Insiders have sold 50,992 shares of company stock valued at $17,390,505 in the last three months.

And the company says there's no signs of demand slowing down.

All in all, Tesla will reduce the production of these cars by 10% in the fourth quarter in order to reallocate these resources into improving its Model 3.

Other reports by GlobalViralNews

Discuss This Article