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Tesla's key challenge is not Model 3 production, but profitability, says Bernstein

The key factor dealing with Tesla Inc. TSLA, -7.23% is not manufacturing of the Model three but profitability, Bernstein analysts stated Tuesday. Tesla on Monday reiterated its expectation that it will be successful and cash flow positive in the third and fourth quarters because it reported second-quarter deliveries, but "we believe that even if Tesla does hit these targets, it will likely be due to one-time austerity (working capital, opex) and/or product mix (4WD and performance version) factors ... and will not resolve the fundamental controversy of long-term Model 3 profitability," analysts led through Toni Sacconaghi wrote in a word. Tesla stated its further manufacturing line, which was once in-built a tent, produces the same quality as its regular line. "However, we question whether Tesla can really evaluate customer satisfaction yet, when 11,166 Model 3s (likely including a majority of those manufactured on GA4) still remain undelivered in transit," stated the word. Sacconaghi wondered whether the tent will be maintained indefinitely and whether the most commonly guide paintings being performed on it may be automatic and at what value. If Tesla didn't have room in its Fremont plan to construct capability for five,000 vehicles every week, how will it arrange 10,000, the analyst asked. Tesla stocks have been buying and selling down five% Tuesday, and are now up simply 2% in 2018, matching the S&P 500's SPX, -Zero.49% achieve.

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Tesla stock slammed as analysts query whether manufacturing purpose is sustainable

Tesla Inc. stocks slid 7% Tuesday, as analysts weighed in on lower-than-expected second-quarter deliveries and wondered whether the achievement of a key manufacturing purpose is sustainable.