Despite the setbacks, Tesla says it still has £2.6bn in the bank and that its production targets are still more or less on schedule. At the same time, first day reservation holders looking to purchase the 220-mile Standard Model 3 can expect delivery in “early 2018”, while delivery for the dual motor Model 3 is expected to take place sometime between June and August 2018. Tesla reported a non-GAAP loss per share of $2.92, worse than its non-GAAP gain per share of $0.71 in the year-ago quarter and worse than a consensus analyst estimate for a loss of $2.31.
He downplayed the long-term implications of the delays.
Model 3 production is “steadily increasing”.
“We see additional capital needs to deliver Model Y by late 2019 (~$3-6bn Gigafactory/assembly plant) in addition to the cash needed to expand its dealerships and charging stations”. Non-GAAP losses per share were $2.92, versus the consensus of $2.31 per share in losses. Citigroup Inc. initiated coverage on shares of Tesla in a research note on Thursday, July 20th.
Tesla burned $1.42 billion in cash in the third quarter. When it comes to net revenue, the average estimate from a total of 18 analysts is 2.94 billion – compared to $2.3 billion posted in the year-ago period. He said Tesla wasn’t aware of the extent of the issues until very recently, and the company’s engineers had to scramble to rewrite software from scratch to compensate for the contractor’s error. “I believe one should always lead from the front lines”.
“Based on what we know now, we currently expect to achieve a production rate of 5,000 Model 3 vehicles per week by late Q1 2018, recognizing that our production growth rate is like a stepped exponential, so there can be large forward jumps from one week to the next”, the company said. But during the call with analysts, Musk hesitated to reaffirm that guidance, saying more information about the outlook for next year would come after the fourth quarter.
Electric vehicle maker Tesla pushed back targets for its new Model 3 auto, admitting its’s months behind schedule.it would now produce 5,000 of the cars each week by early 2018, instead of December.
Still, the firm said it was hard to predict how long the bottlenecks will last or “when new ones will appear”.
“Several manufacturing lines, such as drive unit, seat assembly, paint shop and stamping, have demonstrated a manufacturing ability in excess of 1,000 units per week during burst builds of short duration”.
In a letter to shareholders, Tesla noted that it received “record net orders” for the Model S and X in Q3-the two automotive products that the company seems to be able to push out with consistency.
Tesla Model 3 units ready for delivery.
TRADEMARK VIOLATION NOTICE: “Tesla Inc”.
The company has been way behind in its Model 3 production goals due to bottlenecks at the company’s Gigafactory in Nevada.