Elon Musk Admits Excessive Automation To Blame For Model 3 Delays

James Marshall
April 16, 2018

In his tweet, Musk insisted the company will not need to raise more funds.

"If we can send a Roadster to the asteroid belt, we can probably solve Model 3 production".

A Bloomberg tool that estimates Model 3 production based on VIN registrations puts the current pace at about 3,000 units per week, far below the company's stated target of 5,000 units sustainably produced per week by the end of Q4 past year. That has postponed revenue from reaching Tesla's bottom line from cars being delivered to customers. They are more anxious about whether Tesla will be able to continue to fund operations and future plans, said David Whiston, an analyst with Morningstar Inc.

The comments are no doubt linked to the sad instance last month where a pedestrian was killed after being hit by an automated Tesla auto.

Thomson Reuters consensus of analyst estimates predicts Tesla's free cash flow to be negative well into 2019, thanks in part to heavy investments. "It's about the next 10, 20 years", he said.

This comes at a time when reports of Tesla Model 3 having missed production targets and manufacturing challenges have surfaced.

The SEC didn't comment on Musk's tweet but referred to a 2013 press release that said sometimes social media can be used for financial disclosures but it is something it closely monitors.

Since launching last summer, the Model 3, which costs $35,000 for the base model and is touted as the first affordable electric auto, has been the subject of much analyst handwringing. According to the plaintiffs, while the trio told markets that the company was on track to 5,000 Model 3s per week before the end of 2017, they were separately being told by Tesla executives that this was an impossible goal. But in a statement, Tesla said it withdrew from the panel, adding: "We believe in transparency, so an agreement that prevents public release of information for over a year is unacceptable". And the NTSB takes, they take a long time to complete an investigation. Tesla had earlier accepted "party status" in the investigation, which allows the parties to share investigative information in the early stages of an accident probe, the agency said.

"The system worked as described, which is that it's a hands-on system. It is not a self-driving system".

Other reports by Click Lancashire

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