Tesla sinks after missing Model 3 deliveries by a mile (TSLA)

Alan Olson
January 6, 2018

The projection for the current quarter is that it will produce around 2,500 a week, and be producing 5,000 a week by the end of Q2.

Remember when Elon Musk said Tesla would be making 20,000 Model 3s a month by December 2017?

The delay sent shares of the Palo Alto, California-based company down 3.5 percent in pre-market trading Thursday.

It's a simplified version of what Tesla auto owners get in-vehicle, but it's plenty useful for either giving a broad tea of what taking a road trip in one of Tesla's electric vehicles would look like in practical terms, and it's also a good way to get an understanding of what Tesla's expansion of its Destination Charger and Supercharger network means for potential vehicle ownership.

The new forecast puts Tesla closer to six months behind its original estimate for ramping up Model 3 production. As we've talked about before, Jonas' approach to monitoring Tesla reminds us of a parole officer who falls in love with their parolee. However, this model is being watched particularly closely as it is widely thought that this is the vehicle that will make or break Tesla. He projects the company will burn through US$4.2 billion this year and assumes the company will raise US$2.5 billion through an equity offering, likely during the third quarter.

While EV company Tesla has begun to increase the number of Model 3 vehicles it can make, it's still struggling to hit its own numbers.

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Tesla announced delivery and production numbers for the fourth quarter of 2017 on Wednesday.

"In the last seven working days of the quarter, we made 793 Model 3s, and in the last few days, we hit a production rate on each of our manufacturing lines that extrapolates to over 1,000 Model 3s per week", the company said in a statement.

The electric-car maker said it delivered 1,550 Model 3 sedans in the fourth quarter, a bit more than half of the 2,917 that Wall Street analysts were expecting. "But I would not question their ability to finance at this point".

Still, it was able to complete the cross-country journey in just 50 hours, using $100 to charge their Model 3 in that time.

Tesla shares, despite paring some gains from a high of $385 in September, still trade at 46 percent above their price a year ago. Investors, on the other hand, will probably focus on the company's cash flow and the potential effect, which production delays may cause on its performance.

"We're also very appreciative of our Model 3 customers, who continue to stick by us while patiently waiting for their cars". "They've kicked the can down the road".

Other reports by GlobalViralNews

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