Tesla Falls Short On Model 3 Production Target
The shares slumped 2.1% to a ballpark of $310.65.
The Tesla Model 3 production target fell short as they shipped less-than-expected sedans. Following this, the firm is now looking at mass-producing 5,000 Model 3s in a week by the end of June this year, having pushed back other plans to meet the hefty milestone.
Tesla’s slowdown in the production department has raised speculations of an increase in the capital investment for the manufacturing of Model 3s. The firm has been spending heavily, a figure close to US$1 billion a quarter, on tools, robotics and assembly lines for the sedan that is the most inexpensive offering yet by the automaker priced at $35,000.
The shares slumped 2.1% to a ballpark of $310.65 as a result of the target-miss on last Wednesday. According to reports, the company produced 1,550 Model 3s in the last three months of 2017 compared to the analyst’s predicted average of 2,900 units. We still did not hear about Model 3 deliveries in the UAE.