If that wasn't bad enough news, Tesla also reported its biggest quarterly loss ever. with a net loss of $619.4 million.
The company wanted to roll 5,000 cars a week off the line by the end of the year, but factory glitches have ensured that figure will not be met until March 2018.
A year earlier, the firm made a profit of $21.9m. The electric vehicle producer reported ($2.92) EPS for the quarter, topping the consensus estimate of ($3.09) by $0.17. Today, Musk said on the company's earnings call that Tesla would be able to achieve full autonomy, but regulatory demands might make a hardware upgrade necessary.
Among investor worries: The Wall Street Journal reported on October 6, citing unnamed sources, that "as recently as early September major portions of the Model 3" were being built by hand. Pittenger & Anderson Inc. increased its position in shares of Tesla by 20.0% in the second quarter.
Services and Other revenues increased to $304.3 million from $126.4 million in the year-ago quarter. The Model 3 line at the company's Fremont, California, plant is barely moving, with workers frequently having to sub for stalled automation systems.
Money-losing Tesla's long-term viability depends on the Model 3, its new sedan that starts at US$35,000, about half the price of its flagship Model S.
Tesla burned $1.42 billion in cash in the third quarter. Finally, Legal & General Group Plc grew its holdings in Tesla by 8.3% during the 2nd quarter. This indicates that production has not been as smooth as anticipated.
Tesla, led by Silicon Valley entrepreneur Elon Musk, said it now expects to build 5,000 Model 3s per week late in the first quarter of next year, from its original target date of next month.
Tesla's first mass market vehicle has been beset with manufacturing issues - and there' s no end in sight. This will result in a decline in the inventory level of finished Model S and Model X vehicles.
(NASDAQ:TSLA) by 85.0% during the third quarter, according to the company in its most recent Form 13F filing with the SEC. According to the so-called "update letter", that's going to happen toward the end of Q1 2018, which represents nearly a three-month delay. Following the completion of the sale, the vice president now directly owns 1,736 shares of the company's stock, valued at approximately $589,354.64. "So these are nutty growth rates", he told investors. Robert W. Baird reissued an "outperform" rating and set a $411.00 price target on shares of Tesla in a research note on Monday, September 18th.
"While Tesla stock is indicated down afterhours, we're not sure that the [third quarter] print changes the perception around the longer-term tenets of the Tesla story (leading advantages in batteries and tech, etc.), although we think there are a number of issues on those tenets". Our experts cover all kinds of trades... from value to momentum. from stocks under $10 to ETF and option moves. from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises.