Tesla Model 3 makes LA to NY trip in 50 hours

Tesla Model 3 makes LA to NY trip in 50 hours

Tesla Model 3 makes LA to NY trip in 50 hours

Tesla said on Wednesday it would likely build about 2,500 Model 3s per week by the end of the first quarter, half the number it had earlier promised. Tesla initially intended on reaching this mark at the end of December.

Tesla shares closed lower for a second consecutive trading session on Thursday. The new Model 3, crucial to the company's success, won't hit full-scale production until the end of June, Tesla said Wednesday - almost a year after the company began manufacturing the vehicle in small numbers.

Musk has often described an "S-curve" for Tesla's production plan in which small batches of vehicles lead to rapid expansion of volume and then level off, a trajectory followed by the Model S and Model X. Delays were expected, but the Model 3 must increase production on a unprecedented scale with little room for error.

"We believe a fundraise will be necessary for Tesla in 2018", Brian Johnson, an analyst at Barclays, wrote in a report to clients Thursday.

Tesla's luxury Model S sedans and Model X SUVs regularly require fixes before they can leave the factory and quality checks have routinely revealed defects in almost all of these models inspected after assembly, Reuters reported in November, citing sources.

According to Chief Financial Officer Deepak Ahuja, the company's cash flow is to "improve significantly" during the upcoming several quarters, since Model 3 production ramp-up continues. It had about $3.5 billion in cash and cash equivalents as of September 30. For the year gone by, Tesla delivered 102,432 vehicles, a solid increase from the 83,922 vehicles it delivered in 2016.

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Tesla has fallen short of Wall Street expectations by revealing that it delivered just 1550 examples of the Model 3 in the fourth quarter of 2017. The company now expects to reach its goal of 5,000 vehicles per week by the end of the second quarter.

The Model 3 is expected to arrive in the United Kingdom in 2019.

"We're also very appreciative of our Model 3 customers, who continue to stick by us while patiently waiting for their cars".

"Tesla has really lofty goals for automation", said Tasha Keeney, an analyst at ARK Investment Management, which holds Tesla shares.

In a letter sent out by the Californian carmaker, it says it delivered 1,550 of its new vehicle in the final three months of 2017 - 2,550 fewer than predicted. The company said it made significant progress on speeding up manufacturing of the sedan late last month, producing 793 units in the last seven working days.

While investors certainly won't look at another Model 3 production delay favorably, they may at the very least find solace in the fact that interest in the Model S and Model X is higher than it's ever been. "They've kicked the can down the road".

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