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Tesla pushes back Model 3 targets again after production miss

06 January 2018

Model 3s are finally getting delivered to non-employees - we got ours last week - which means an end to the NDAs and no-reselling agreements Tesla made employees agree to in order to get priority delivery of the auto. Tesla didn't come close to achieving an initial goal to manufacture that numerous sedans a week by the end of 2017.

Although charging points are becoming more commonplace, buying an electric vehicle still brings some uncertainty with regard to how far and where you'll be able to travel.

Shares of Tesla Inc (TSLA) hit lows unseen in a month during Thursday's trade, one day after the company once again pushed back its production objective for the keenly-anticipated Model 3 sedan.

"We believe a fundraise will be necessary for Tesla in 2018", Brian Johnson, an analyst at Barclays, wrote in a report to clients Thursday. 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 reported its largest quarterly loss on record and spent as much as $1.1 billion in cash during the quarter ending in September.

As a result, now that owners have their cars and can do what they want with them, some of them are trying to make a little side cash on Turo, a website where owners can rent their cars out for a daily fee. It comes after a disappointing third quarter a year ago when only 222 Model 3s were delivered (Tesla was predicting 1,500).

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He said that 6.5 per cent for the full year meant that Q3 and Q4 numbers will be far better than first half of the year. The Gross Value Added (GVA) has been projected to be at 6.1 per cent versus 6.6 in the past year .

Despite continued headwinds with the Model 3, Tesla did manage to deliver more of its Model X, Model S, and Model 3 vehicles than in previous quarters. 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.

The estimates for Model 3 deliveries by different brokerages varied widely.

Customers who pre-ordered a Model 3 will have to keep on waiting.

The Model 3 - which starts at $35,000, or about half the price of its flagship Model S - was met with great enthusiasm when its prototype was first unveiled in early 2016. 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. But Tesla has skipped many incremental steps used by established carmakers when launching new products.

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.

Tesla pushes back Model 3 targets again after production miss