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Tesla production snags delay Model 3 electric vehicle

Tesla production snags delay Model 3 electric vehicle

"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 the letter. But investors' eyes were on the Model 3, the $35,000 auto that's meant to move Tesla from a luxury niche automaker into the mainstream. Tesla announced it had produced 260 Model 3 sedans in the third quarter, far below its target of 1,500 in September.

Tesla said there are no issues with its supply chain.

Tesla was already facing backlash from its shareholders over production of the Model 3, which is the first vehicle that's priced more for the average consumer at $35,000. It had planned to build more than 1,500.

Tesla's negative free cash flow swelled to $1.4 billion, more than analysts had expected. The problems could also worry the over 500,000 customers who have put down a refundable deposit on the auto. Can increased its holdings in shares of Tesla by 2.7% in the 2nd quarter.

Tesla could face major new requirements for cash given Model 3 problems, a possible factory in China, and plans to develop other vehicles, including an electric heavy duty truck.

Results from electric cars maker Tesla Inc (NASDAQ:TSLA) are likely to be all about the ramp-up of production of the new model 3. Pittenger & Anderson Inc. raised its position in Tesla by 20.0% during the 2nd quarter. It also spent $325 million to repay a credit facility in the quarter.

The company says it's on pace to deliver 100K vehicles for the full year.

Tesla acknowledged Wednesday that it would not achieve its previous goal of hitting a production rate of 5,000 Model 3 vehicles per week by the end of the year, instead pledging to do so by the "late" first quarter "based on what we know now". The business had revenue of $2.79 billion for the quarter, compared to the consensus estimate of $2.50 billion. Shares of far larger automaker General Motors have climbed about 23 percent, while Ford shares are up almost 2 percent.

Musk previously acknowledged the difficulty in beginning manufacturing of the Model 3, saying that the process is highly automated and that Tesla is intent on revolutionizing automotive production and not following standard industry practices.