Report Suggests Tesla Inc (TSLA) Lagging to Meet Production Results

Marco Green
July 1, 2018

Tesla made Model 3 a bit more easier to afford by reducing the price on its dual-motor option, as well as making some features of Model 3 Performance version optional. While talking about Performance of the Stock, Tesla Motors inc now has a Weekly performance of 0.7%, monthly performance percentage is 19.95 percent, Quarterly performance is 31.49 percent, 6 months performance shows a percent value of 12.29% and Yearly Performance is -5.74 percent. Tesla is still working to reach its goal of building 5,000 units weekly by the end of this quarter; a step that would allow it to be cash-flow positive and profitable in the second half of the year. "Whether the company hits 5,000 units per week now, or later this year has virtually no incidence on the future of the company, he writes".

Proceeding one step further in this direction, this week the company is contacting those in North America who have already made a deposit of $1,000 to reserve their Model 3 for an additional $2,500 to turn their reservation into an official order.

Production setbacks have led many on Wall Street to become Bearish Tesla stock, doubting Mr. Musk's remarks that the tech firm will not need to raise additional capital to fund operations.

Tesla is expected to release production and delivery figures early next week. On Friday, March 16 FIELD JOHN DOUGLAS also sold $321,408 worth of Tesla, Inc.

You can now design and order your Model 3.

Meanwhile, Tesla has also faced a variety of its own issues, including at least two Fremont fires this month. Tesla has since filed suit against Martin Tripp in federal court in Nevada.

But a new report by Reuters cautions that Tesla does not appear to be on track to make its 5,000 vehicle-a-week target by tomorrow, the end of the second quarter.

The additional $2,500/vehicle demand is created to provide Tesla with much needed cash against the rumor that it is being denied access to any new Street money and that this last run in its stock is a distribution of shares by the wire houses prior to a major Fibo correction of at least 55%.

In its frantic bid to get to the 5,000 target, Tesla has gone to a 24/7 production schedule.

It's not yet known how long the temporary production line will be operational for or if it will be gradually converted into a full-time production line.

Can I just make it simple and say, the production capacity must have increased by a good margin for Tesla to make this move. That's often the source of trouble for other auto factories too. A Monday shift produced 210 Model 3s, while a Wednesday shift produced 305 of the vehicles, the workers said.

Musk has often criticized news coverage of the company, claiming it is inaccurate in its portrayal of Model 3 production problems.

Tesla's financial problems are well known.

Other reports by Click Lancashire

Discuss This Article