Tesla Share Prices Takes A Hit After Another Model 3 Delay

Tesla Share Prices Takes A Hit After Another Model 3 Delay

Tesla Share Prices Takes A Hit After Another Model 3 Delay

Tesla initially intended on reaching this mark at the end of December.

Tesla shares pared losses Thursday after falling as much as 3.6 per cent, the biggest intraday drop in five weeks.

The ever-changing Model 3 deadline is not a unique development for Tesla.

"As a result of the significant growth in our production rate, we made as many Model 3's since December 9 as we did in the more than four months of Model 3 production up to that point", Tesla said, explaining that this is why it wasn't able to deliver many of these cars during the holiday season, just before the quarter ended. However, this model is being watched particularly closely as it is widely thought that this is the vehicle that will make or break Tesla.

In the months leading up to launching the Model 3, Tesla raised at least $1.2 billion through an offering of stock and convertible debt in March and another $1.8 billion by tapping the junk-bond market in August.

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.

"Given that TSLA received over 400k Model 3 reservations with essentially no marketing, we believe potential demand for the vehicle is likely underestimated, and think TSLA could significantly increase demand through its own advertising in the future", Baird Equity Research analyst Ben Kallo said.

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Company chief executive Elon Musk put the target miss down to focusing on "quality and efficiency" over high production numbers.

Tesla reported deliveries of 1,550 Model 3s in the final three months of the year, trailing analysts' average estimate for about 2,900 units in a Bloomberg News survey.

Tesla has fallen short of Wall Street expectations by revealing that it delivered just 1550 examples of the Model 3 in the fourth quarter of 2017. So was Jonas rending garments when Tesla announced that instead of making 5,000 Model 3s every week, the company made 1,550 apparently bespoke Model 3s in three months?

The Model 3 - which starts at $35,000, or about half the price of its flagship Model S - was met with great enthusiasm when its prototype was first unveiled in early 2016.

"Tesla has really lofty goals for automation", Tasha Keeney, an analyst at ARK Investment Management, which holds Tesla shares, said in a phone interview.

"We're also very appreciative of our Model 3 customers, who continue to stick by us while patiently waiting for their cars". The company said it made significant progress on speeding up manufacturing of the sedan late last month, producing 793 units in the last seven working days.

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