Tesla fails to meet Model 3 targets again after slow production

Tesla fails to meet Model 3 targets again after slow production

Tesla fails to meet Model 3 targets again after slow production

He said: "We're very grateful to everyone at Tesla who has poured their heart and soul into helping with the Model 3 ramp and creating the progress we are seeing". Tesla didn't come close to achieving an initial goal to manufacture that many sedans a week by the end of past year.

Tesla shares closed lower for a second consecutive trading session on Thursday.

Tesla's new mid-range Model 3 electric vehicle is right around the corner, with the auto giant using the new Model 3 to make the quickest trip across the United States in an electric vehicle.

Musk has often described an "S-curve" for Tesla's production plan in which small batches of vehicles lead to rapid expansion of volume and then level off, a trajectory followed by the Model S and Model X. Delays were expected, but the Model 3 must increase production on a unprecedented scale with little room for error.

A Tesla Model S vehicle is seen in a showroom in Santa Monica, California, US, January 4, 2018. He projects the company will burn through US$4.2 billion this year and assumes the company will raise US$2.5 billion through an equity offering, likely during the third quarter. "We have them hovering about $1 billion in cash".

The Model 3's delivery schedule has been marred with setbacks.

Only 1,550 Model 3s were delivered in 2017's fourth quarter, the company said in an online statement Wednesday.

The Model 3 notwithstanding, Tesla did manage to enjoy a successful quarter overall; the company delivered more than 29,800 vehicles over the past three months, setting an all-time quarterly record in the process.

Initially, Tesla planned to roll out 5,000 Model 3s weekly by the end of the fourth quarter of 2017. It also surpassed its 100,000-vehicle goal for 2017.

"Perhaps the issues that have significantly hobbled the Model 3 ramp really can be fixed in a cost-effective manner and shortly cycled past (although this did not happen in 4Q)", Brinkman said.

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

The company said another 2,520 Model S and X vehicles and 860 Model 3 vehicles were in transit to customers at the end of the quarter.

Tesla shares, despite paring some gains from a high of $385 in September, still trade at 46 percent above their price a year ago. During the last week of December, the company said, it made 793 Model 3s. Cowen's Osborne wrote in a report to clients Wednesday that the carmaker may need to raise more capital again in the next three to six months. These will be counted as deliveries in Q1 2018, Tesla said.

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