{"id":3393,"date":"2018-04-03T10:36:32","date_gmt":"2018-04-03T14:36:32","guid":{"rendered":"http:\/\/lifeinsurance-orleans.ca\/Life-Insurance-Blog\/?guid=7950fe42102bc5bc800dcd09e325745a"},"modified":"2018-04-03T10:36:32","modified_gmt":"2018-04-03T14:36:32","slug":"tesla-falls-short-on-model-3-production-target-but-shares-are-going-up-anyway","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2018\/04\/03\/tesla-falls-short-on-model-3-production-target-but-shares-are-going-up-anyway\/","title":{"rendered":"Tesla falls short on Model 3 production target \u2014 but shares are going up anyway"},"content":{"rendered":"<p>Tesla Inc. sees progress ahead for the mass-market sedan that keeps falling short of targets and said a capital raise won\u2019t be required this year, spurring a partial rebound for the electric-car maker\u2019s battered shares.<\/p>\n<p>The company led by Elon Musk built 2,020 Model 3 cars in the last seven days, trailing its target for a 2,500-unit rate for the final week of March. Tesla delivered 8,180 of the sedans in the first three months of the year, missing analysts\u2019 average estimate for about 8,800 units in a Bloomberg News survey.<\/p>\n<p>Despite the shortfall, Musk promised a speedy acceleration in the next three months. Tesla shares opened up as much as 6.9 per cent and gained 2.2 per cent to US$258.11 as of 9:47 a.m., regaining some ground after a 22 per cent slump in March.<\/p>\n<ul class=\"related_links\">\n<li><a href=\"http:\/\/business.financialpost.com\/transportation\/autos\/elon-musk-makes-light-of-teslas-troubles-in-april-fools-tweets\">Elon Musk makes light of Tesla\u2019s troubles in April Fool\u2019s bankruptcy tweets<\/a><\/li>\n<\/ul>\n<p>The lower-than-expected deliveries and production will intensify the debate over Musk\u2019s ability to deliver on his quest to bring electric cars to the masses. Mounting liquidity pressures and challenges with the Model 3 prompted Moody\u2019s Investors Service last week to cut the carmaker\u2019s credit rating further into junk status, adding fuel to a selloff of the company\u2019s bonds to all-time lows.<\/p>\n<h3>Addressing \u2018Bottlenecks\u2019<\/h3>\n<p>\u201cWe were able to double the weekly Model 3 production rate during the quarter by rapidly addressing production and supply chain bottlenecks, including several short factory shutdowns to upgrade equipment,\u201d Tesla said in a statement.<\/p>\n<p>The company expects the Model 3 production rate will increase \u201crapidly\u201d through the second quarter and said it will make 5,000 units a week in \u201cabout three months.\u201d<\/p>\n<p>\u201cTesla does not require an equity or debt raise this year, apart from standard credit lines,\u201d the company said.<\/p>\n<p>Read more: Musk Needs to Recharge Tesla\u2019s Finances to Make the Model 3 Go<\/p>\n<h3>Negative Headlines<\/h3>\n<p>Beyond the downgrade and the Model 3 concerns, Tesla is also grappling with a U.S. investigation of a fatal crash involving a Model X and a voluntary recall of every Model S made before April 2016. Tesla\u2019s stock fell by 22 per cent in March, the steepest monthly drop since December 2010, the year the company went public.<\/p>\n<p>Heading into the final week of the quarter, a Tesla executive urged line workers at the company\u2019s sole auto-assembly plant in Fremont, California, to safely ramp up Model 3 output to more than 300 a day and \u201cprove a bunch of haters wrong.\u201d Musk said on Twitter Monday he was sleeping at the factory and called the car business \u201chell.\u201d<\/p>\n<p>The carmaker halted Model S and Model X production at the very tail of the month because it was ahead of schedule to hit first quarter targets. A small number of those workers were invited to voluntarily help build Model 3 cars instead.<\/p>\n<p><a href=\"http:\/\/www.bloomberg.com\/\"  rel=\"noopener\">Bloomberg.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Elon Musk promises a speedy acceleration in the next three months and see no need for capital raise<\/p>\n","protected":false},"author":578,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/3393"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/578"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=3393"}],"version-history":[{"count":1,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/3393\/revisions"}],"predecessor-version":[{"id":3394,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/3393\/revisions\/3394"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=3393"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=3393"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=3393"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}