Based on figures in Tesla's latest earnings letter, the company isn't expecting to reach its initial goal of making 5,000 Model 3's per week until sometime next year. Excluding non-recurring items, such as a $1.1 billion in Brighthouse separation-related charges, adjusted earnings per share came to $1.09, above the FactSet consensus of 89 cents. However Tesla plans to produce about 10 percent fewer cars of both models in the fourth quarter as more resources shift toward Model 3.
Editor's Note: We'd like to take a moment to say (and self-congratulate) that we forecast both that Tesla production targets for the Model 3 had apparently been moved back a full quarter AND that current EV production would be scaled back to assist with the Model 3 during our monthly United States sales recap.
The electric auto maker's $35,000 Model 3 sedan is the vehicle that could move Tesla from a luxury niche automaker and into the mainstream. It had planned to build more than 1,500. The problems could also worry the over 500,000 customers who have put down a refundable deposit on the vehicle. Year-to-date, TSLA has gained 55.15%, versus a 16.68% rise in the benchmark S&P 500 index during the same period.
FILE PHOTO: A Tesla charging station is seen in Salt Lake City, Utah, U.S. on September 28, 2017.
On the ratings front, Tesla stock has been the subject of a number of recent research reports. He declined to comment to what extent Model 3 production would be behind its targeted schedule.
Tesla reports full third quarter financial results on Wednesday after the market close, and might provide new Model 3 production targets for the rest of the year. Tesla had initially said it could hit that rate during the current quarter. It also spent $325 million to repay a credit facility in the quarter.
Tesla, Inc, formerly Tesla Motors, Inc, designs, develops, manufactures and sells fully electric vehicles, and energy storage systems, as well as installs, operates and maintains solar and energy storage products. That compares to Wall Street's expectations of a loss of $2.29 and revenue of $2.95 billion. Following the sale, the director now directly owns 36,111 shares in the company, valued at approximately $12,290,739.96. The company opened 18 stores and service stations worldwide during the quarter, and set up 126 new Supercharger stations to try to prepare for the increase in demand from Model 3 buyers. That's far below the 1,500 Tesla was hoping to have delivered by this time.