Tesla released quarterly earnings report this week. It indicated that while the company met its first half sales goal, production was heavily pressured by a shortage of battery packs – likely a temporary one. Elon Musk also announced that the production of the much awaited for Model 3 will begin this Friday, ahead of schedule.
The company set an ambitious production goal of 20,000 vehicles per month in December. In August, the number stands at only 100 vehicles, but it’s expected to grow to over 1,500 in September.
If you’re one of the 30 lucky customers who will receive the first Tesla 3 Model, you’re also invited to a party on July 28th, where the vehicles will be handed out to you. Don’t worry, we’re sure you’re invitations are already in the mail.
In case you haven’t heard about this vehicle yet – not likely, everyone is talking about it – Model 3 is Tesla’s affordable vehicle, with cost starting at $35,000 before tax incentives.
If you’re under the impression we’re excited about this new model and its impact on the company’s shares, you’re right, and a quick look at the chart indicates many investors feel the same. Even though Tesla shares decreased by 2.5% on Monday – before Wall Street went on its July 4th holiday – the shares are still up over 64.5% since the beginning of 2017.
There is little doubt that investors put great hopes on Model 3, but this also means that the stakes are high for Tesla. Any sign suggesting that the Model 3 will struggle to meet quality demands or to be profitable, could instantly impact sentiment.
Stay informed and stay ahead of the market.
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