Tesla (NASDAQ:TSLA) Demanding More Deposit Money on M3 Orders
This week, nascent EV maker, Tesla (NASDAQ:TSLA) sent out e-Mails to all reservation holders of its M3 sedan to confirm their orders and configure their vehicles and send in another $2,500.
This comes as CEO Elon Musk is scrambling to drive up production of the company’s M3 sedan to reach his promised target of $5,000 vehicles per week by the end of June 2018. That end is here.
And that is goal that Mr. Musk has pushed out and out and out further a number of times.
Production setbacks have led many on Wall Street to become Bearish Tesla stock, doubting Mr. Musk’s remarks that the tech firm will not need to raise additional capital to fund operations.
The additional $2,500/vehicle demand is designed to provide Tesla with much needed cash against the rumor that it is being denied access to any new Street money and that this last run in its stock is a distribution of shares by the wire houses prior to a major Fibo correction of at least 55%.
Tesla does not break down reservations by region, nor has Mr. Musk disclosed a reservation number recently and we do not know how many M3 $1000.00 reservation have been cancelled.
The basic M3 sedan has the standard battery, and starts at $35,000, is not available in any numbers, and has no company assisted buyer financing program.
Earlier this week, analysts at Goldman Sachs issued a research note reiterating their sell rating on TSLA shares and forecasting the firm to fall short of its targets when it reports its Q-2 production and delivery numbers in the first few days of July.
Mr. Musk has thumbed his nose at Goldman and indicated that it is “quite likely” that the firm will reach its goal of 5,000 M3 units per week by the end of June, this is the End of June. We will know on Tuesday.
Tesla stock finished down about 0.7% Friday in New York at 342.95.
In the past we have seen investors reacted positively to Tesla’s last 3 production and delivery data releases despite Mr. Musk failure to make his pronounced targets.
This time the reaction may not be positive, especially with expectations being raised after Mr. Musk reassured investors that Tesla’s Model 3 production would achieve 5,000 units per week.
Missing its M3 production target again could increase Tesla’s risk profile due to rising competition.
General Motors (NYSE:GM), Ford (NYSE:F), Fiat Chrysler (NYSE:FCAU) and Volkswagen (OTCMKT:VLKAY) have all revealed plans to invest heavily in EV development, and we know these are the most advanced and solid companies in the automotive sector, there is nothing iffy about them.
You may recall that on Tuesday the 26th Mr. Musk teased the public about a Tesla pickup truck again, the timing of his Tweets are questionable, as they appear to be a deflection of the M3 production bottlenecks.
We will soon know.
Have a terrific weekend
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