Production ‘Hell’ Continues at Tesla (NASDAQ:TSLA)
Tesla Inc.’s (NASDAQ:TSLA) Model 3 production ‘Hell’ delays are now being dubbed a “time shift,” by its CEO, Elon Musk.
“You’ll definitely get your car,” Mr. Musk, 46 anni, said in a TV interview Thursday. “It’s a 6-9 month time shift. That’s literally it, and three of those months have passed.”
Mr. Musk is testing his customers’ and investors’ patience by not being able to resolve production issues causing what he has called “production Hell.” The frame of his manufacturing troubles is lasting about 3 Quarters longer than he thought, he said.
His comments are inconsistent with Tesla’s statement earlier this month, when the company said Model 3 may exceed the growth rate that Ford Motor Co (NYSE:F).exhibited with the Model T.
Mr. Musk said that Tesla was making progress. “As long as you can see that you’re ascending levels of hell, that’s OK. Then at least that gives you hope. And I think we are rapidly, Tesla’s rapidly on its way out of production Hell.”
When asked if Model 3 depositors were canceling their reservations, Mr. Musk said that some had, he was not specific.
“It’s mostly, like, people cancel because, you know, they just needed a car and we didn’t have a car for them,” he said. As of the end of 2017, Tesla reported more than $850 million in customer deposits, including for the Model 3.
Tesla delivered 8,180 Model 3s in Q-1 of this year, missing analysts’ average estimate for about 8,800 units. The company built 2,020 of the sedans in the 7 days leading up to 3 April, below its announced target for a 2,500-unit rate in the final week of March.
The company has said the production rate for Model 3 will increase through Q-2 and that it will make 5,000 units a week in about 3 months.
Mr. Musk says he is sleeping on the factory floor, as he did in Y 2016 when Tesla was struggling to produce the Model X crossover.
|NASDAQ:TSLA||297.62||12 April 2018||-3.31||302.32||303.95||293.68||4,174,268|
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