Tesla's lower-priced Model 3 to start production Friday

Share
Tesla's lower-priced Model 3 to start production Friday

Tesla chief technology officer J.B. Straubel claimed, "We've really learned a lot of lessons", referring to the complicated production of Model X auto.

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.

Tesla Motors Inc (NASDAQ:TSLA) will deliver the new Model 3 sedan to its first 30 customers on July 28, which just meets the promised July deadline set out by Musk.

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.

Elon Musk also said that a new fleet of mobile service trucks will be provided to help the customers who live far from the service centers.

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.

Share

Advertisement

Related Posts

Kang goes bogey-free to grab early lead at KPMG Women's PGA
I don't know if he was next to me, I'm pretty sure he was, because on the last putt, I just remembered my first U.S. When asked if she would do anything to celebrate Canada Day after Saturday's round, Henderson said: "Probably not".

Oil Caps Longest Winning Streak Since April; US Output Slows
Some say USA production may slow further as drilling costs are expected to rise, eroding margins and returns. Production is near a two-year high. "He "gets" it; few others around him do", Garman wrote.

'Despicable Me 3' Powers Toward Strong $83 Million Opening
Ansel Elgort has already clinched second place, but if he keeps up this momentum, " Baby Driver " could end Sunday at $19 million. Despite the addition of an interesting new character, Gru's long-lost twin brother, Dru (Carell), the ingredients are familiar.

Kanye West Reportedly Leaves Tidal, Says He's Owed Millions
It can be recalled that Kanye West previously broke down and was hospitalized for more than a week in November 2016. Sources adds the company is ready to sue Kanye if he decides to release music through another streaming platform.

Modi heads to Israel, lifting the curtain on close ties
Going beyond these traditional areas of cooperation , Modi would want to tap into Israeli technological and innovation prowess. Modi may find similar common ground with Netanyahu, Israel's longtime right-wing prime minister who hosted Trump in May.

Fourth of July: Fireworks safety always good idea
Their website shows zones where fireworks are legal. -Heritage Park Concessions: Hotdogs, snacks, shaved ice, drinks, etc. Officials say the safest way to enjoy fireworks is to attend a public display conducted by trained professionals.

O'Brien case dismissed at judiciary
And Lions head coach Warren Gatland added: "We would like to thank the panel for their professional and diligent approach". But after Saturday's win he was keen to suggest the mockery was a factor in the Lions' togetherness.

Boats, Trailer Damaged When Illegal Fireworks Are Ignited
One child was taken to a hospital with burns, and parents of another reported injuries to 911, the fire department said. The Attorney General's Office issued an opinion about fireworks earlier this year at the request of a legislator.

Pretty Little Liars' AD Speaks Out About That Twist (Spoilers)
The only person we hear working towards a career is Spencer, who we find out is in law school and working at her mother's firm. Could Alison really kidnap someone else's child? Jenna tells Toby, who tells the PLL gang, and they end up calling the police.

Defending champion Andy Murray confirms his fitness for Wimbledon
The 37-year-old broke down in tears in a post-match press conference when asked about a auto crash she was recently involved in. All three - Andy Murray , Rafael Nadal and Kei Nishikori won in straight sets to seal their passage into the second round.

© 2015 Stump Report. All Rights reserved.