Tesla's Model 3 misses production targets a second time

Tesla's Model 3 misses production targets a second time

He said: "We're very grateful to everyone at Tesla who has poured their heart and soul into helping with the Model 3 ramp and creating the progress we are seeing".

But it was already hard to see how Tesla can sell the Model 3 at its $35,000 starting price and pull in 25 percent gross margins, which are typical of higher-end luxury cars, Brinkman said.

At the time of publication, Tesla shares had dropped 2.01 percent in after-hours trading to $310.10 per share.

Tesla produced more vehicles than in previous quarters.

Some of these numbers seem a little ridiculous, but considering this is one of the most hotly-anticipated vehicles in recent memory and deliveries only just started a couple weeks ago, it stands to reason that we would see a few owners testing the market to see what they can get. These include the construction of new factories, the buildup of the solar and battery business, and the introduction of new models, such as the Tesla Semi, Roadster and Model Y.

Tesla is burning billions in cash as it struggles to achieve its vision of mass-market electric cars powered by Tesla-brand solar roofs through Tesla-brand home storage batteries.

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Including Model S sedans and Model X crossovers, Tesla delivered a total of 29,870 vehicles during the fourth quarter.

In delivering 1,550 of its new Model 3 electric vehicles in the fourth quarter, Tesla fell short of Wall Street expectations. The company now expects to reach its goal of 5,000 vehicles per week by the end of the second quarter.

Tesla's bonds due in 2025 were quoted at 94.9 cents at 8:30 a.m., according to Trace bond price data, the lowest in about a month.

"We think there is even room to hold off returning to the capital markets if the new schedule goes slightly slower than expected", he said in an email.

Previously, Tesla was trying to manufacture Model 3s at that rate sometime in 2017.

Analysts said on Thursday they continue to believe that sales of the Model 3 sedan could transform the niche automaker into a mass producer, giving it an edge over a host of rivals such as General Motors and BMW who are entering the nascent electric auto market. During the last week of December, the company said, it made 793 Model 3s. By postponing production plans, the company may also defer spending, said Jeff Osborne, an analyst at Cowen & Co. who has the equivalent of a sell rating on the shares. Yet in the same period, 63,000 were cancelled, Elon Musk said during Tesla's quarterly conference call in July-a figure he saw as insignificant as it happened over 12 months.

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