Sci-tech

Tesla pushes back production targets for Model 3

Tesla pushes back production targets for Model 3

Since then, Tesla has dealt with highly publicized Model 3 production "bottlenecks" and delivered a paltry number of vehicles well below its targets, issued a recall, and fired hundreds of employees (which spawned a lawsuit).

"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", Tesla said in its statement. However Tesla plans to produce about 10 percent fewer cars of both models in the fourth quarter as more resources shift toward Model 3. (The) restated a "sell" rating and issued a $200.00 price target (up previously from $180.00) on shares of Tesla in a research note on Wednesday, August 9th.

Panasonic sees batteries as central to its plan to almost double automotive business revenue to 2.5 trillion yen by the year through March 2022.

The news wasn't all bad for Tesla.

The company produced just 260 Model 3 cars in September, which was waaaaaaaaaay short of the 1,500 vehicles it had hoped to produce.

"We expect 3Q gross margins could come in below our estimate of 17.8% due primarily to the digestion of high start-up costs related to Model 3 production, lower pricing for Model X and weaker-than-expected volumes", said the analyst, adding that production woes should begin to improve in Q4. "I really believe that one should lead from the front lines".

The automaker said Wednesday in its third quarter earnings report that Model 3 production has been slowed by progress at its Gigafactory, now saying it will reach its goal of producing 5,000 of the vehicles per week by early 2018, rather than the end of 2017.

The question facing the company now is whether the production issues will bother anyone outside of the industry observers who track the company's every movement.

Tesla's continued need for cash is exacerbated by Musk's insistence on vertical integration, such as making its own batteries and selling cars directly to customers.

CEO and co-founder Elon Musk has loudly and repeatedly promised total production of 500,000 vehicles in 2018, with 400,000 of them Model 3s.

Trip Chowdry, a senior analyst at global equities research, cautioned against investor panic as well.

"Earnings mean nothing for companies that are creating new industries from ground up", he said.