Tesla deliveries at low end of forecast, starting Model 3 production
Tesla Inc. said it has delivered about 47,100 electric sedans and SUVs in the first half of 2017, at the lower end of its own forecast shortly after the chief executive announced that Elon Musk production of his model For the mass market 3 would begin this week and build 20 000 a month of December.
Shares were down 2.5% on Monday’s regular session at $ 352.62 after the Model 3 comments and fell a bit more in trade outside of trading hours, following the first half report.
Tesla says a “serious shortfall” of new battery packs had forced vehicle manufacturing through June, and predicted that shipments of the second half of the Model S sedan and Sport Utility Vehicle Model X would probably exceed those of the first half. He planned deliveries in the first half from 47,000 to 50,000.
Most investors are focused on model 3’s outlook and some analysts were skeptical about the planned launch in July after production delays and quality problems have hampered the start-up of the Model S and Model X
Tesla shares have risen more than 60 percent this year, partly on expectations of a major launch for its Model 3, the company’s first car to refer to the mass market. Tesla has a market value of 58 billion, more than General Motors Co and Ford Motor Co.
In a series of Twitter releases Sunday night, Musk said Model 3 had passed all regulatory requirements for production two weeks ahead of schedule.
“Production increases exponentially, so they should be 100 cars in August and above Sept 1500,” musk said. “It looks like we can get 20,000 model cars a month in December”
This corresponds to the target set by Tesla, more than 5000 models 3 per week by the end of this year and 10 000 vehicles per week “sometime in 2018”.
Tesla filed on deposits of more than 300 000 models 3, starting at $ 35,000 per vehicle. Its popularity stands out as the top US manufacturers are facing a slowdown. GM and Ford reported lower sales for June this Monday.
Model 3 was a turning point for Tesla as it moved from a luxury car manufacturer to a mass producer. The 500,000 vehicles the company plans to achieve next year are almost six times the production in 2016.
Reuters reported in February that Tesla closed production at its California assembly plant for a week to prepare for the production of the sedan 3, to meet its target starting in July.
(Reporting by Subrat Patnaik in Bangalore and Peter Henderson in San Francisco, edited by Amrutha Gayathri and Bill Rigby)