Tesla stock rallies on better than expected results.
Telsa expects to produce 1,500 Model 3 vehicles in the upcoming third quarter, 5,000 vehicles produced per week by the end of this year and 10,000 per week by the end of 2018.
The entrepreneur's comments came after Tesla announced its second-quarter financial results, revealing revenue of $2.8bn (£2.1bn) and a loss of $2.04 per share.
Senior Analyst Clement Thibault reported another problem with customer support and especially refunding the $1,000 deposit buyers had to pay in order to reserve a Model 3.
Our colleagues at Consumer Reports have not yet tested the Model 3, but predict that it will score just two points out of five for reliability, but five out of five for owner satisfaction. "That's the one part of the financials that are a little bit troubling".
Duke of Edinburgh attends final solo royal engagement
The BBC reported that the rank will pass to Philip's grandson Prince Harry following his retirement. The royal couple are scheduled to celebrate their 70th wedding anniversary in November.
Still, given the continued build-out of the Fremont factory and Tesla's Gigafactory battery plant in Nevada, the possibility of continued cash burn is high.
As production improves, the non-GAAP Model 3 gross margin should be positive in the fourth quarter, Tesla said, eventually growing to 25 percent in 2018. Tesla delivered the first 30 cars in late July, but with its continuing losses, management could focus on the Model 3, which most bulls are hyper-focused on anyway. That may not be enough for many customers, especially those who prefer a auto with a longer range.
Those cars will be considerably more expensive than the much-publicized $35k starting price that helped the Model 3 reservations gain traction, mind. "Since the handover event last week, we are averaging over 1,800 net Model 3 reservations per day", Tesla said in its letter.
Tesla Inc. (NASDAQ:TSLA) chief executive Elon Musk said about 63,000 people have cancelled their orders for the Model 3 as he presented the electric vehicle maker's second quarter earnings.
"CEO Elon Musk sounds increasingly squeamish about the production ramp", Sacconaghi said in his note. But Musk said there "will be significant carryover" from Model 3 production in order to bring the compact SUV to market faster.
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