Tesla Reaches Model 3 Production Target

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Tesla’s CEO Elon Musk has some “sad” news for his fans

Musk said in October 2016 that the company planned to do a Los Angeles-New York trip "without the need for a single touch" of the steering wheel by the end of past year to demonstrate the capabilities of Autopilot. Estimates are from analysts that the company has a few months more to live, given its cash reserves, before the firm will be forced to tap equity or debt markets once again.

According to the company, "the quality of Model 3 coming out of production is at the highest level we have seen across all our products" and customer satisfaction for it has reached 93%, which is the highest rating Tesla has had, so far.

Invest wisely, my friends.

Shares of Tesla climbed more than 5% on Tuesday after the company said that the production of its Model 3 cars had gone up to about 10,000 since the beginning of 2018. However, Tesla has been very clear in stating that it had meant to reach 2,500 Model 3 units each week by end of Q1 (remember they had originally forecasted 5,000 per week by end of Q1 2018). In the past seven days, it produced 2,020.

Fresh off the worst month for Tesla shares in more than seven years, the company reported a rate of Model 3 sedan production that again fell short of its forecast, while standing by the next target for its debut mass-market vehicle.

The firm said in a statement it had doubled its weekly Model 3 production rate in the third quarter.

"The TP reduction is largely a reflection of the on-going delays to the ramp to reach c10k units a week and a time when Model 3 gross margins begin to normalize, with scale". The previous production target of 2,500 a week is easily forgotten. 4,060 Model S and X vehicles were on their way to customers at the end of Q1, which was 68% higher than at the end of Q4 2017.

But Tesla Motors now claims production improvements are generating enough cash flow that the company will not need to raise any new cash in 2018.

If you want to add plug-in hybrids into the mix, Model 3 even beats the Toyota Prius Prime, which is now the best-selling plug-in hybrid vehicle in the USA with 6,468 units during the first 3 months of the year. "Without fresh funds, it's tough to see how Tesla achieves the spectacular growth still priced into its shares". In a research note Tuesday, analysts at JPMorgan recommended selling Tesla stock on the earnings upswing, viewing the pop on production progress as a ideal time to lock in profits and get out.

Tesla ended up producing 289 Model 3s per day in the last week of March.

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