Tesla built 2000 Model 3's in one week, but missed its target

Tesla built 2000 Model 3's in one week, but missed its target

Tesla built 2000 Model 3's in one week, but missed its target

Tesla's share price appears to be recovering thanks to increased production of the new Model 3 mid-sizer, following a recent nosedive.

Tesla reported Tuesday that it built 34,494 electric cars in the first quarter of 2018, by far its largest quarterly production total ever. Currently, it is the #1 EV maker in America.

Over the weekend, Tesla revealed that the driver had been using Tesla's autopilot software feature at the time, raising more questions about the safety of the company's self-driving technology. With the continuous Model 3 "production hell', Tesla is likely to find fresh funding more expensive and more hard to get, according to analysts".

In a fourth-quarter letter to investors, Tesla Chief Executive Officer Elon Musk said the company planned to produce 2,500 Model 3 sedans a week by the end of the next quarter.

When Tesla rolled out the Model X in late 2015, it was years behind schedule, and production was marred by problems with its complicated falcon wing doors, custom mono-post rear seats and other unique new high-tech features.

Not every vehicle that rolls off the assembly line is immediately delivered to a customer.

Not all of the cars built in the last quarter representing deliveries to paying customers; those totaled 29,980 vehicles, "of which 11,730 were Model S, 10,070 were Model X, and 8,180 were Model 3", according to the company. While Tesla has since gotten a handle on Model X quality control issues, Musk these days is primarily concerned with boosting Model 3 production.

Bulls can point to record vehicle production in the quarter.

Despite that shortfall, Tesla remains bullish on its ability to produce Model 3s.

Smallville's Kristin Kreuk Issues Statement About Alleged Involvement In Sex Cult
Bronfman gave millions of dollars covering expenses like private air travel costing US$65,000 (A$84,617) flight, court papers say. Reports stated that he liked thin women so the sex slaves in his group were only allowed to eat 500 to 800 calories a day.

Ben Affleck Is 'Doing Just Fine' With His Terrible Back Tattoo
There is something about this exhausted father that reflexively induces panic. 'I support him in all of his artistic expression'. Ben's good friend Matt Damon stood up for him on The Daily Show with Trevor Noah .

Hands On With Huawei's Porsche Design Mate RS
That said, we're still waiting for some apps to get optimised for the phone's notch, as things still get hidden "behind" the gap. This is helped by the phone's 4D Predictive Focus feature, in which the camera predicts where the object is likely to be.

Tesla noted that its delivery figures are "slightly conservative", and that it only considers a vehicle to be delivered once the auto is transferred to a customer and all paperwork is complete.

"Elon Musk's April Fools" tweets joked about Tesla going bankrupt, but analysts aren't joking when they say that the company may have to tap capital markets before the end of the year to raise financing because it continues to burn a lot of cash.

Considering the amount of bad press Tesla has gotten over the past few days, this relatively sunny production report is well timed. This is the third quarter in a row that the company had missed its promised production target.

Tesla Inc shares fell $12.18 (-4.55%) in premarket trading Wednesday.

In February Tesla said it had taken deposits and orders for more than 500,000 Model 3's in the last two years.

"Are they really at 2,000 or did they just stuff their system to achieve 2,000 for last week?" said David Kudla, Chief Executive and chief investment strategist at Mainstay Capital Management, who said he now has no bets on Tesla.

Increasing Model 3 production is important for the Silicon Valley electric carmaker, whose profitability is tied to the cheaper auto. Our initial customer satisfaction score for Model 3 quality is above 93%, which is the highest score in Tesla's history. He's back to sleeping at the factory. It expects to hit a weekly production rate of 5,000 Model 3 units within three months.

Production accelerating so fast it may soon "exceed even that of Ford and the Model T".

Related news