Tesla Inc. (NASDAQ: TSLA)
Shares of Tesla climbed more than 5% on Tuesday after the company said that the production of its Model 3 cars had gone up to about 10,000 since the beginning of 2018. The figure is a significant rise from last year’s fourth quarter, but still not close to what investors were expecting the automaker to reach.
Tesla produced 2,020 Model 3 sedans during the final week of the first quarter, missing its target of 2,500 a week. Following the release of its results for the quarter, its shares surged 7% in premarket hours, and later eased up 5% around $267 in midday trading.
TSLA Earnings & Outlook
During the release of its Q1 earnings, the company said it was aiming at increasing its Model 3 sales in order to help cut down losses and raise more revenue as it invests heavily in automobiles it hopes to design in the future. Tesla’s goal for the quarter was to produce not less than 2,500 Model 3s every week and implemented some remarkable measures in its quest to hit that target.
The company dispelled concerns by some analysts predicting that the company would fall into a cash squeeze arising from its production troubles. It estimates that output for its Model 3 sedans would hit 5,000 cars per week in the next three months. Tesla also hopes to achieve an ideal combination of positive operating cash flow, good gross margin, and high volume.
Tesla’s CEO Comments
Tesla chief executive officer, Elon Musk, recently joked that he had been spending the night at the company’s plant in Fremont, California. The comment came after Musk took issue with a report published on The Information news website, claiming that he was not in good terms with Doug Field, the company’s senior engineering vice president. The website further reported that Musk had taken complete control of Model 3s production.
The CEO took Twitter on Monday saying, “Can’t believe you’re even writing about this. My job as CEO is to focus on what’s most critical, which is currently Model 3 production. Doug, who I regard as one of the world’s most talented engineering execs, is focused on vehicle engineering.”
Tesla, Inc. Company Profile
Tesla is an American electric-car maker that was founded in 2003. It is based in California and engages in the design, development, manufacture, and sale of electric cars, and storage systems and energy generation. Tesla’s has two segments of operation, Energy Generation and Storage, and Automotive.
Under its Energy Generation and Storage segment, the company offers energy-storage products like rechargeable Li-ion battery systems for residential and commercial use, and utility grids. On top of that, Tesla engages in the design, manufacture, maintenance, installation, sale and lease of solar energy systems to commercial and residential clients.
Through its Automotive segment, Tesla engages in the manufacture of sport utility automobiles and sedans. The automaker also produces electric vehicle powertrain systems as well as components which it sells to other car makers. The competitors of Tesla include Ford, BMW, Fiat. Audi, Lexus, Sunrun Inc., Mercedes, General Motors, Mitsubishi, Trinity Solar, Toyota, Daimler, AES Energy Storage, Honda, LG, Chem, Sungevity, Inc., Samsung, and Vivint Solar Inc. –Reuters