Tesla reported a $619 million loss in the third quarter mostly due to heavy spending on Model 3 production. Tesla also discounted inventory vehicles with discontinued trims (90 kWh packs) in order to move inventory, and the mix shifted toward the less profitable 75 kWh trims. But with that attention has come a great deal of scrutiny, and criticism over labor issues in its plant, along with customer complaints about materials and workmanship, and frequent production delays with all of its vehicles. The total auto deliveries also reflected 18.7% positive growth quarter-over-quarter. Elon Musk has managed to promote Tesla as a strong brand and people believe in the new technologies Tesla is developing.
Beyond the headline figures that included its biggest quarterly loss ever ($671 million), the focus was expectedly on what the bottlenecks were and how Tesla is working to overcome them.
Data source: Tesla's third-quarter shareholder letter. This result ramen about $ 3 per share.
A lot of outside companies get into such partnerships to avoid the 25% import tax that's levied on foreign carmakers, but Tesla seems to want to do this independently.
"Any journalists who have written articles to this effect should be ashamed of themselves", Musk said. Reports said that between 400 and 700 employees in the 33,000-person company were laid off after performance reviews.
Production of the much anticipated Solar Roof is being transferred from the Tesla factory in Fremont, California, to Gigafactory 2 in Buffalo, New York. "Any journalist [who wrote these articles] should be ashamed of themselves for lacking journalistic integrity", Musk said. Tesla Inc shares fell 6 per cent at opening today, as analysts expressed doubt over chief executive Elon Musk's communication with investors and some said the company could need more financing soon.
Although Tesla has made inroads among luxury vehicle buyers with the advanced technology and innovative design in its Model S sedan and Model X SUV, it is the Model 3 on which its long-term viability rests.
Daniel Sparks owns shares of Tesla.
"As expected, [Tesla] is two-to-three months behind schedule for the Model 3, and guided to weak [fourth quarter] gross margin given the Model 3 production ramp, which may pressure shares".
The Model 3 is Tesla's primary growth factor, but the company had not been able deliver what investors wanted.
Production of the Tesla Model 3 has stalled.
"Now, I can see sort of a clear path to sunshine", he said. According to the so-called "update letter", that's going to happen toward the end of Q1 2018, which represents nearly a three-month delay. Tesla denies those allegations.
Tesla has also projected by end of 2018 it will produce 500,000 cars, 80-percent of which could be the Model 3.