Electric carmaker Tesla announced dissappointing third quarter earnings Wednesday. $TSLA announced a bigger loss and again production is behind. How long before the Tesla cultists fall out of love with CEO Musk’s charm?
Electric carmaker Tesla announced dissappointing third quarter earnings Wednesday. $TSLA announced a bigger loss and again production is behind. How long before the Tesla cultists fall out of love with CEO Musk’s charm?
In a manic stock market bigger losses are overlooked with hopes but the question has to be asked how many broken promises and cash burned can a market bare?
While it is true that Tesla is not a one trick pony anymore since it acquired another Musk stablemate in solarcity it is the electric car that all the hype, promises and branding is built around.
Earnings: Adjusted earnings loss of $2.92 per share worse than an adjusted earnings loss of $2.29 per share on revenue of $2.98 billion. better than expected revenue of $2.95 billion
Reaction: Tesla Inc NASDAQ: TSLA $307.83 ▼ 13.25 (4.13%)
Production Promises Come Up Empty Again
Tesla pushed back production targets, now expecting to reach production of 5,000 Model 3 vehicles per week by late in the first quarter of 2018. Previously Musk indicated that he expected 5000 by fourth quarter of 2017. $TSLA said it will provide an update on fourth-quarter output in “the first few days of January.”
“While we continue to make significant progress each week in fixing Model 3 bottlenecks, the nature of manufacturing challenges during a ramp such as this makes it difficult to predict exactly how long it will take for all bottlenecks to be cleared or when new ones will appear,” Tesla wrote.
CEO Elon Muskwarned investorsin early October that Model 3 production would come in well below expectations. $TSLA made just 222 Model 3s in the third quarter, in line with Tesla’s October guidance but well below the 1,500 the company had previously expected.
Source: Tesla, Aplha Street