Tesla (NYSE:TSLA) Remains in ‘Manufacturing Hell’

Tesla (NYSE:TSLA) Remains in ‘Manufacturing Hell’

Tesla (NASDAQ:TSLA) Remains in ‘Manufacturing Hell’


Tesla Inc. (NASDAQ:TSLA) is likely to deliver about 5,000 Model 3’s in Q-4, KeyBanc Capital Markets analysts said Wednesday, way below company’s estimate of 15,000 EVs.

The numbers indicate that the EV may still not be out of its self-described “manufacturing hell” for the production of the $35,000 Model 3 sedan.

KeyBanc analysts based the projections after conversations last week with sales people at 18 stores in the United States.

“We talked to stores in California doing as many as a dozen per week with around 10 being the average, and we estimate stores outside of California were doing something closer to 6 per week,” the analysts wrote.

Tesla’s shares are currently are trading off 4.52 at 312.77 Wednesday.

Palo Alto, California-based Tesla made only 260 Model 3 sedans in Q-3 Vs its target to build more than 1,500 due to what it called “production bottlenecks.”

The company said in November it expects to build 5,000 Model 3s per week late in Q-1 of Y 2018 from its original target date of December.

A further delay in Model 3 production could lead to postponed sales and exacerbate Tesla’s cash burn. Over 500,000 customers have put down a $1,000 refundable deposit for the car.

Tesla could not immediately be reached for comment.

HeffX-LTN Analysis for TSLA: Overall Short Intermediate Long
Neutral (-0.09) Neutral (-0.12) Neutral (-0.19) Neutral (0.03)

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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