Tesla Just Announced The Latest Model 3 Production Delay

Shares of Tesla fell 3% Thursday after the company disclosed that it is still having a tough time getting its Model 3 to customers on time. Tesla is way behind on its ambitious production goals

Tesla misses production goals for all-electric Model 3 sedan

Musk has long said that production of new Tesla cars occurs like an "S-curve", where initial manufacturing is low and slow; when an inflection point is reached, the production speeds up dramatically.

Thursday's drop is a welcome sign for traders who have been loading up on bets against Tesla. GM launched the auto in 2015, far ahead of the $35,000 Model 3, Tesla's first mass-market vehicle, and it seemed like no contest at the time.

Tesla ended September with about $3.5 billion cash in hand and projected another $1 billion in capital expenditures during the last three months of the year.

"We believe a fundraise will be necessary for Tesla in 2018", Brian Johnson, an analyst at Barclays, wrote in a report to clients Thursday.

Justin Timberlake releases trailer for new album Man of the Woods
Last year, he garnered a big hit with "Can't Stop the Feeling", which reached No. 1 on the Billboard Hot 100 songs chart. Take a look at the visual announcement, complete with snowy pine trees and Jessica Biel in an Indiana Jones hat, below.

Even with the super-cold weather hitting most parts of the United States right now, the Model 3 had its heater blasting away reducing the miles the electric vehicle could drive without charging. Tesla said in its release that in the last seven working days of the fourth quarter it made 793 Model 3 cars.

According to Chief Financial Officer Deepak Ahuja, the company's cash flow is to "improve significantly" during the upcoming several quarters, since Model 3 production ramp-up continues. The carmaker has been blowing through more than US$1 billion ($1.4b) a quarter as it's had trouble scaling up output despite spending heavily on robots, assembly lines and tooling for the sedan that is Musk's cheapest yet, starting at US$35,000.

Still, Tesla managed to deliver 1,550 Model 3s in the last quarter of the year, after keeping analysts guessing for quite a while.

Building the auto efficiently and delivering it without delays to customers is also critical, as the money-losing company faces high cash burn.

Gionta, Bourque to lead Olympic Team USA in men's ice hockey
On perhaps an even more impressive note, Keller is just 12 points shy of cracking BC's top 10 on its all-time scoring list. He found out that he had made the roster for the US Olympic hockey team, and then got to tell his dad about it.

Tesla will start producing 2,500 Model 3s weekly by the end of the first quarter of the year, the company said in yet another update that disappointed thousands of people who have preordered the vehicle as well as investors, sending its shares down by 2 percent after hours. It also surpassed its 100,000-vehicle goal for 2017.

Initially, Tesla planned to roll out 5,000 Model 3s weekly by the end of the fourth quarter of 2017.

"We're also very appreciative of our Model 3 customers, who continue to stick by us while patiently waiting for their cars".

"We think there is even room to hold off returning to the capital markets if the new schedule goes slightly slower than expected", he said in an email.

Starbucks trials 5p charge on disposable cups
However, due to their plastic lining, customers who put them in the recyclable waste effectively contaminate it. Welsh ministers are considering asking for powers to tax the cups and other plastics that are hard to recycle.

Tesla shares gained 45% in 2017. But Tesla has skipped many incremental steps used by established carmakers when launching new products.

Latest News