Tesla Model 3 delay raises cashflow risks, but analysts upbeat

Tesla misses production goals for all-electric Model 3 sedan

In other words, Tesla appears to be now producing the Model 3 at a pace is well of the pace implied in our earnings model.

Model 3 production is accelerating Tesla had initially predicted to reach the milestone of 5,000 vehicles per week in December, but in November deferred the target to the end of the first quarter.

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

Many analysts believed Model 3 production would ramp up significantly in the fourth quarter this year and that roughly 4100 examples would be delivered.

By nearly every metric, Tesla massively missed its super-aggressive production target of its Model 3 for the final quarter of 2017.

A Tesla Model S auto is seen in a showroom in Santa Monica, California, US, January 4, 2018. The electric auto maker said in an online statement Wednesday it expects to produce 2,500 a week by the end of March. 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.

As a result, now that owners have their cars and can do what they want with them, some of them are trying to make a little side cash on Turo, a website where owners can rent their cars out for a daily fee.




The estimates for Model 3 deliveries by different brokerages varied widely.

The company said it delivered a total of 29,870 vehicles in the fourth quarter, including 15,200 Model S and 13,120 Model X cars. 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? It also surpassed its 100,000-vehicle goal for 2017.

Tesla's bonds due in 2025 were quoted at 94.9 cents at 8:30 a.m., according to Trace bond price data, the lowest in about a month.

Customers who pre-ordered a Model 3 will have to keep on waiting.

For the entire past year, the shares of the NASDAQ-listed electric vehicle maker rose 45.70% following a 10.97% slump in 2016. 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.

The more gradual ramp is so the company can "focus on quality and efficiency rather than simply pushing for the highest possible volume in the shortest period of time", according to the release.

That pace of production is still below that of many carmakers. These will be counted as deliveries in Q1 2018, Tesla said.

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