Tesla’s Production Nightmare Gets Worse
Tesla scrambled this week to reassure investors after expensive delays have plagued production of the Model 3:
On Wednesday, Mr. Musk sought to calm investors over production delays in Tesla’s first mass-market offering, the Model 3, portraying the problems as no more than temporary glitches associated with bringing a new vehicle to market.
In November, Tesla posted staggering $671 million loss for the third quarter, its largest quarterly loss ever:
Tesla Inc. posted a $671 million loss for the third quarter — its largest ever quarterly deficit — dropping from a $22 million net profit recorded for the same period last year.
Tesla burned through $1.4 billion in cash during its last quarter:
The company burned through $1.4 billion in cash during the quarter as it continued to invest heavily in its plants. That’s compared with a cash burn of $1.16 billion during the second quarter.
Financial firm UBS anticipated that Tesla will eventually need “additional outside funding” to keep its operations running:
“With limited Model 3 profitability, infrastructure expansion needs, & Model Y capacity build (late 2019), we believe TSLA will eventually need additional outside funding,” he wrote
UBS “reaffirmed its sell rating” on Tesla:
UBS slashes Tesla profit estimates predicting more Model 3 problems UBS slashes Tesla profit estimates predicting more Model 3 problems Tesla’s disappointing Model 3 production ramp is a troubling sign, according to one Wall Street firm. UBS reaffirmed its sell rating on the electric car maker’s shares, predicting Tesla will continue to have issues producing its Model 3 vehicles.