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.
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