Still, Tesla believes it will get to the 200,000 to 300,000 per year production level by next year. The same issue is now the primary concern of the markets when it comes to the company's Model 3 production, release, and deliveries. Production is thought to exponentially increase, from about 100 vehicles in August, to 1500 in September, to 20,000 a month by December. The future of the company is riding on the Model 3. The electric vehicle producer reported ($1.97) earnings per share (EPS) for the quarter, missing the Zacks' consensus estimate of ($0.67) by $1.30.
Shares of the company rose by 3% on Monday from closing at $361.61 during Friday's market close after Musk tweeted the details of the Model 3 production on Sunday. The Model 3 roll out will go a long way toward determining if Tesla can make good on its promise to go head-to-head with long-standing manufacturers, such as General Motors and Ford, or if it's destined to remain a niche operation.
Tesla's stock tumbled 7.2% on Wednesday, and shares dropped another 4.1% at $313.78 in Thursday trading.
But for now, Tesla itself is doing some work, as it obtained patents for new wheel design for the Model 3. As for the specs, the mass-market car's primary advantage will be its 215 miles per charge (approx 350 km). We project the two vehicles to sell around 110,000-120,000 units combined each year. And, it will also give the prospective owners a bit more time to save up some more so they won't have to be limited to the Model 3 in its most basic form. Driven by these growth expectations and a growing urban following, the shares are up more than 60% over the past year, despite operating cash flows swinging back to negative over the past two quarters.
The sales miss coincides with mounting competition from traditional auto makers such as Volvo, which announced on Wednesday that it would only build electric or hybrid vehicles after 2019. IIHS said Tesla modified the vehicle and they retested it, but the same thing happened again. When he's not busy planning sending people to Mars or boring tunnels in LA, he's probably working on dishing out a "ludicrous" electric auto.