Reaching Model 3 production target doesn't solve Tesla's problems

Reaching Model 3 production target doesn't solve Tesla's problems

In context: Tesla still has a substantial backlog of Model 3 pre-orders to wade through and the company's future is by no means guaranteed but it's a step in the right direction nevertheless. Tesla said the number of Model 3s in transit was unusually high due to a significant increase in production toward the end of the quarter. One employee said they were told to keep working until they met their daily production mark, not when their shifts ended. Moreover, Levy adds that Tesla's recent announcement that Model 3 reservation holders need to fork over an additional $2,500 to secure the auto "seems to be an aggressive attempt to meet otherwise hard targets of being cash flow positive" during the September quarter.

Musk has previously claimed that the 5,000 Model 3 benchmark would give Tesla enough revenue that it would not need to raise more money from investors. Earlier reports suggested that production of the sedans, hatchbacks, and SUVs bottlenecked at the automaker's paint shop, which was over capacity and struggling to meet demand.

David Kudla, founder and chief executive of Mainstay Capital Management in Grand Blanc, Michigan, said Monday's news did not change his recommendation to short Tesla stock.

That same report also said Tesla will occasionally pull its machines off the production line and crank them beyond manufacturer specifications, just to see how fast they can run.

Cavs GM has had "good dialogue" with LeBron
The good news is Sexton is a 78 percent shooter from the foul line, meaning he has decent form and release on his shot. The 19-year-old lacks professional experience, but Altman pointed out that James dealt with that issue this season.

The big question many had, though, was whether Tesla could reach its production goal of making 5,000 Model 3 per week. During the entire three-month period, Tesla made 28,578 Model 3 sedans, which is more than the 24,761 combined total of Model S and X vehicles produced in this time. 'The Model 3 fits five adults comfortably, ' said Musk. To reach its goal Tesla added to its manufacturing line by building cars temporarily under a tent.

As such, Spak reiterates a Sector Perform rating on Tesla stock, with a price target of $280, which represents a potential downside of almost 20% from where the stock is now trading. He reiterated a Sell rating and $195 price target on the shares today, writing that while the company did make its production goal, as he expected, Model 3 deliveries missed his bearish estimates.

The company lost its top engineer Doug Field last week who had been on a leave of absence since May. But the credit will be reduced to $3,750 in the first half of 2019; $1,875 in the second half of 2019; and then expire at year's end. Of those, 18,440 were Model 3, 10,930 were Model S, and 11,370 were Model X.

Analyst Brian Johnson of Barclays warned investors in March to be wary of brief "burst rates" of Model 3 production that were not sustainable.

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