Tesla Has "Most Productive Quarter" In History, Builds 34494 Vehicles
- Author: Carolyn Briggs Apr 05, 2018,
Apr 05, 2018, 22:32
Tesla has managed to ramp up production of its "mass market" Model 3 electric cars but output is still falling short of the targets that the company's billionaire founder Elon Musk intended. Finally, Cann downgraded Tesla from a "hold" rating to a "sell" rating in a report on Tuesday, December 5th. American Century Companies Inc. now owns 655,149 shares of the electric vehicle producer's stock valued at $203,981,000 after acquiring an additional 53,279 shares during the last quarter.
On Sunday, April 1, in what many would call bad taste, Elon Musk tweeted an April Fool's joke, as Tesla's stock plummets and light is shed on the recent Model X driver's death that came while using the company's "Autopilot" feature.
That's over twice as many as the next best-selling all-electric vehicle in the US, GM's Chevy Bolt EV deliveries, which reached 3,375 units over the same period, as we reported earlier today.
The electric auto company initially planned to produce 5,000 Model 3 sedans a week by the end of 2017, but that number was quickly revised as the affordable vehicle's production began faltering. The electric vehicle producer reported ($3.04) earnings per share (EPS) for the quarter, beating the consensus estimate of ($3.12) by $0.08.
Musk, 46, has embraced the fact he often errs on the side of stretch goals rather than setting a low bar for himself or his company. The "mainstream" model promises to deliver solid margins but at much higher volume than its other, more expensive models. We've contacted Tesla for more information, so stay tuned. Shorts are, they're well aware that there is this catalyst coming that might actually be positive.
The biggest challenge that Tesla now faces is not what is in the news - it is its mounting debt. And when you look at it, the Model 3 determines their cash need, period. Tesla's employees, too, are feeling the strain-last week, executives asked factory workers to contribute to the Model 3 push instead of focusing on their duties elsewhere. "That will really cure a lot of these cash questions, and I think they're gonna have a very good year".
Tesla had previously set a goal to build around 2500 Model 3s per week by the end of March.
Tesla's profitability is reliant on increasing its Model 3 production.
The recent threat by China to reciprocate the imposition of tariffs on Chinese-made goods by the US could seriously affect Tesla's sales, Bloomberg notes.