A faint glimmer of hope for Tesla's tumbling stock emerged around noon when Jalopnik reported that Tesla is reported to be making 2,000 Model 3s per week, perhaps enough to ease stock market nerves around the electric carmaker after a week dominated by a barrage of negative newsflow following of a deadly crash involving its semi-autonomous autopilot, a debt downgrade, NTSB outrage, and all culminating with Musk April Fool's joking about a Tesla bankruptcy.
Musk is said to have told employees in a company-wide email on Monday that Tesla had just passed the 2,000 per week rate, according to Jalopnik.
While that is still short of the company's downward revised 2,500 per week target (from 5,000 originally) it is a notable increase from the 793 Model 3s that the company built in the final week of last year, and similar downbeat estimates from most Wall Street analysts. It produced 2,425 of the cars in the whole fourth quarter.
Tesla shares recovered from an 8% drop before the Jalopnik report filtered into markets to trade down 3.5% on the day, although it has since resumed sinking once more and was down 5.5% most recently
According to Jalopnik, in the email, "sent at the perfectly normal email time of 3:01 a.m. PDT on a Monday", Musk said it has been “extremely difficult” to pass the 2,000 vehicle per week rate for the Model 3, “but we are finally here" and quoted the CEO as saying: "If things go as planned today, we will comfortably exceed that number over a seven day period!" The message suggests the company rapidly exceeded production of the Model 3 over the past week.
“It took five years to reach the 2000/week production rate for S and X combined, but only nine months to achieve that output with Model 3,” he wrote.
“This is already double the pace of 2017!” he wrote. “By the end of the year, I believe we will be producing vehicle sat least four times faster than last year.”
Bloomberg, which has been tracking production totals for the all-electric sedan, said over the weekend that Tesla had been hitting around 1,200 per week.
Goldman's estimates of production were not much better.
There is of course Tesla's own guidance, which in the company's Q3 2017 investor letter was the following:
Based on what we know now, we currently expect to achieve a production rate of 5,000 Model 3 vehicles per week by late Q1 2018, recognizing that our production growth rate is like a stepped exponential, so there can be large forward jumps from one week to the next. We will provide an update when we announce Q4 production and delivery numbers in the first few days of January.
Oops.
In other words, it all comes down today's production update: as some perfectly summarized, Tesla - a $45B market cap company - is throwing a Hail Mary today, and IF it works the company will only miss the production target set in Dec of 2017 by 20%, and in Sept 2017 by 60%.
The far bigger problem is if the stock does not rebound on the "fake" beat, and instead continues sliding. That would be the the signal for TSLA longs that it's time to get out of Dodge.
Comments
Update: The stock, after bouncing to $259, has already given back $7 and is at $252
If you hold Tesla stock or Bitcoin punch yourself in the face right now !
In reply to Update: The stock, after… by quoth the raven
Markets Are Thump-Tanking Again...
In reply to If you hold Tesla stock or… by lester1
should be a tweet or a twit along any second now to save the day...
In reply to M by BaBaBouy
Tesla Barely Bounces On News It Is Finally Making 2,000 Model 3s Per Week
My response: BUT THEY ARE LOOSING MONEY ON EVERY CAR!!!!
So now, they are loosing even more money and cash burn is increasing.
In reply to should be a tweet or a twit… by gatorengineer
They can make it up on volume.
In reply to Tesla Barely Bounces On News… by GUS100CORRINA
yes, but...
https://s-i.huffpost.com/gen/4008646/thumbs/o-TESLA-KIDS-CAR-570.jpg?16
In reply to They can make it up on… by DrZipp
They 're probably counting every time an employee takes a shit as a production unit. I would like to see slk the "finished" csrs.
In reply to Tesla Barely Bounces On News… by GUS100CORRINA
According to a recent article Tesla shut down S and X production and shifted those employees to the Model 3 line. Musk is desperate to get the numbers to keep Tesla afloat. It begs the question is Musk desperate for the Model 3 numbers so he shifted employees or are orders for the S and X in the tank so employees can be shifted rather than laid off. Also makes one wonder if they under reported production for awhile and suddenly make those unreported numbers reappear to fulfill Musk's goal and keep the stock up and suckers with bags of cash waiting in the wings to keep the Turkey afloat.
In reply to Tesla Barely Bounces On News… by GUS100CORRINA
Does anyone here actually believe they are making that many cars, when it is so much easier to say you are and not do it. Just saying.
In reply to If you hold Tesla stock or… by lester1
Elon with the stick save! The investors go wild!!!
In reply to Does anyone here actually… by natxlaw
You just don't want to own any of the 1st ones.
In reply to Update: The stock, after… by quoth the raven
I don't want to own any of them, actually.
In reply to You just don't want to own… by css1971
a stepped exponential...how fancy!
Tesla, Titanic, Hindenberg...
In reply to Update: The stock, after… by quoth the raven
So do the sales numbers match?
I'd take a DeLorean any day over a Tesla.
In reply to So do the sales numbers… by VWAndy
John was a real engineer, not some software coder playing one.
In reply to I'd take a DeLorean any day… by ZENDOG
If he coulda built the car he really wanted to it would have changed the game.
In reply to John was a real engineer,… by Winston Churchill
Those woulda been much better with proper turbo charging. They already had the fuel injection for it.
In reply to I'd take a DeLorean any day… by ZENDOG
Tesla - coming to a Hertz counter near you
In reply to So do the sales numbers… by VWAndy
Ok now thats fucking funny! Thanks for the laugh.
Nothing would show the weak points of battery powered cars faster.
In reply to Tesla - coming to a Hertz… by mayhem_korner
Or kill more drivers dumb enough to use the autopilot.
In reply to Ok now thats fucking funny!… by VWAndy
"But we make it up on volume. What? Never mind..."
Black Monday is here, only a week delayed ...
In reply to But we make it up on volume?… by SloMoe
Yes. The more cars they make, the more money they lose.
In reply to But we make it up on volume?… by SloMoe
Gm makes 2500 cars an hour.
Badly put together cars but who cares...
In reply to Gm makes 2500 cars an hour. by Tom Green Swedish
GMs cars take about six years to decay. Teslas do it at a more explosive rate.
In reply to Badly made but who cares... by _ConanTheLiber…
and are running out of parking lots.
In reply to Gm makes 2500 cars an hour. by Tom Green Swedish
Shorting TSLA right now seems like the only sane thing to do.
Shorting Tesla and Bitcoin is too fukin easy !!
😊👍
In reply to Shorting TSLA right now… by balz
Do so at your own risk. Remember the stock market is just one big casino. All you need is some big players bidding up the stock causing the shorts to cover and drive up the price while they sell out on the bounce. Short squeezes, one of the reasons Tesla stock was as high as it was. Wall Street, where the little guys money goes to die.
In reply to Shorting Tesla and Bitcoin… by lester1
And those 2000 will now be bouncing off Jersey bumpers
http://foxbaltimore.com/news/local/woman-asks-governor-hogan-to-remove-…
https://www.nbcwashington.com/news/local/Virginia-Pulls-Guardrail-Blame…
In reply to And those 2000 will now be… by cpnscarlet
What were the overtime costs for the guys that are putting the cars together with hammers at the end?
2000 fireballs coming to an intersection near you (unless they get slowed down by a few pedestrians or guard rails first)
Google images tesla crash
https://www.google.com/search?q=tesla+crash&hl=en&source=lnms&tbm=isch&…
Tesla would sue for defamation of character if alive
Of which 45% will have defective parts.
The pansy assed boneheads on Fake news channels are starting to lose their marbles as the ES and now Dow dip below the 200day average. That moron Cohn was on the blowhorn all morning trying to pimp his oil trades.
With a deteriorating stock market. The window for raising capital may be closing, or will be far more expensive.
No more stawk buybacks, oh the humanity
In reply to With a deteriorate stock… by Rise Of The Machines
At least Teslas will be some of the best looking cars in the auto museum 30 years from now when that will be the only Teslas in existence.
Might be a smart move to buy one and put it up on blocks in your garage.
In reply to At least Teslas will be some… by Muroluvmi
See that 250 unit decline in the late-Feb/early-March production? Musk clearly parked about 250 units per week for 3 or 4 weeks as incomplete, pending screwing on a few rusty bolts somewhere. Then come end of March he dispatched a few wrench-boys to put on those bolts and mark those units as last week's production.
Come early April Tesla production will be back to about 1k per week, hand built shoddy shit.
Nobody cares!
So what Musk is saying is that they are losing money at a faster rate than before. Good to know.
Of course that is a Musk week (10 days long) and Musk counting (includes those in delivery lot from last week).
They improved the production of their battery containers with wheels-wow...
https://www.youtube.com/watch?v=trkQKqNJSlw
Fake fake fake news
seatbelt on- check
ignition on- check
brakes off- check
accelerate- check
set autopilot for valhalla- check
follow distance, minimum- check
increase speed- check
ipad on lap- check
watch "Vanishing Point"- check
see concrete barrier- check
hear "hands on wheel"- check
hear "apply brakes"- check
**crickets**
Right. Sure. Whatever.
Pagination