Tesla (NASDAQ:TSLA) Sales Decline, Production “Snafus” Persist

Tesla (NASDAQ:TSLA) Sales Decline, Production “Snafus” Persist

Tesla (NASDAQ:TSLA) Sales Decline, Production “Snafus” Persist

$TSLA

Tesla (NASDAQ:TSLA) deliveries flat on continuing production Snafus. Hypemister Elon Musk’s targets will not happen on time, what’s new?

The “rentier'” EV maker has reported Q-by-Q shipment declines for the 2nd time in the past year.

This may signal that demand has peaked, casting doubt on whether Mr. Musk can pull off a huge production ramp for the cheaper Model 3 sedan.

“Tesla’s Q-2 production and deliveries report raised more questions than answers, particularly about Model S and X demand,” Toni Sacconaghi, a Sanford C. Bernstein analyst, wrote in a report Wednesday. “The Tesla investment thesis hinges on the success of Model 3, and the ability for the company to ramp production, make the car profitably and deliver good initial build quality.”

Elon Musk has a history of setting aggressive goals and timelines for Tesla and coming up short.

His latest target producing the Model 3 at a rate of 20,000 cars per month in December reinforces the challenge ahead.

Tesla’s stock dove 8.1% Wednesday and is currently trading 326.30 after hours.

After the market closed Monday, the company reported more than 22,000 vehicle deliveries in Q-2, down from 25,051 in Q-1 of this year.

Reports from Key analysts Wednesday say that Demand for Tesla’s higher-priced Model S sedans and Model X sport utility vehicles appears to be plateauing.

Mr. Musk is relying on demand for those vehicles remaining strong as the company spends heavily to bring out the Model 3.

Tesla plans to deliver about 30 Model 3 customers on 28 July, 30 cars, wow! 30 small cars built by hand do not count as mass production.

And how about this, the hyped mass market EV does not have official photos, options, pricing or really any details available, nothing.

This delivery is a photo opp at best.

Goldman Sachs cut its 6 month price target for Tesla stock by 10, to 180. E

In the statement released after the close of trading Monday, Tesla did not disclose the number of cars in transit. Its deliveries were impacted by production issues with 100 kWh batteries, according to the company.

Well that tells us how his Gigafactory is doing, Yes?

“2-H Model S and Model X deliveries are expected to exceed 1-H sales, provided global economic conditions do not worsen considerably,” Tesla said in its statement. Meaning, Tesla is in trouble.

Symbol Last Trade Date Change Open High Low Volume
NASDAQ:TSLA 328.68 5 July 2017 -23.94 347.2 347.24 328.1 14,942,114
HeffX-LTN Analysis for TSLA: Overall Short Intermediate Long
Neutral (-0.03) Neutral (-0.18) Neutral (-0.08) Neutral (0.18)

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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