The Silicon Valley automaker and tech company said it remains on track to produce 5,000 weekly units of the auto by the end of the second quarter after several delays. The company is working to keep the rollout of its mass-market Model 3 on schedule, but has a history of missing its timelines and Wall Street's forecasts.
Because of the feedback he received from the Tesla Inc (TSLA) sales channel, he slashed his Q1 2018 Model 3 delivery estimate from 13,000 to 8,500. Instead, Tesla CEO Elon Musk said yesterday that the trip will be done within the next three to six months. The company is bursting at the seams at its auto plant in Fremont, California, and is still building out its Gigafactory near Reno, Nevada.
"In my view, it's a crutch that will drive companies to a local maximum that they will find very hard to get out of", Musk said.
The webcast will be archived on the company's website following the call.
Net loss widened to $675.4 million, or $4.01 per share, for the fourth quarter ended December 31 from $121.3 million, or 78 cents per share, a year earlier.
Tesla lost $1.96 billion for the full year, a record for the company and almost three times its loss of $675 million in 2016.
More notable recent Tesla, Inc. A "Starman" at the wheel.
While Tesla's true believers love these stunts, some analysts are questioning whether Musk should be spending more time fixing Tesla's woes.
Still, Tesla said that its fans remain patient. Tesla's headway with the Model 3 brought in more revenue, while future customers spent tens of millions to hold their spots in line for the Semi and Roadster models that Musk showed in November.
Investors sentiment decreased to 0.95 in 2017 Q3. The company's stock had a trading volume of 6,717,215 shares, compared to its average volume of 5,440,000. Tesla's stock was flat in after hours trading Wednesday following the earnings report. He has repeatedly pledged game-changing automation and new processes.
Tesla's reasons behind fitting the hardware on all vehicles, regardless of whether the customers pay to have full use of them or not, is easy to understand: it allows the company to have a huge fleet of cars out there that run the self-driving system in ghost mode, gathering the much-needed data for the learning algorithms.
Elon Musk is not a fan of LIDAR, the laser sensor that most tech and auto companies see as an essential component for self-driving cars.
At those levels, it would qualify as one of the world's best-selling vehicles. Eleven investment analysts have rated the stock with a sell rating, thirteen have issued a hold rating and eleven have given a buy rating to the company's stock.
"He appears to be more eager to sell hats and flamethrowers rather than meeting previously stated production targets for Tesla vehicles", Thibault wrote in a note to investors.
To be sure, that could still happen.
Information-starved investors will be on high alert, as will thousands of would-be drivers waiting for Tesla to produce and deliver new electric cars.
"Every automaker goes through a production ramp-up, but 28% total production growth over the course of a year feels slow when considering how long the Model S and Model X have been in production", said Karl Brauer, executive publisher of Kelley Blue Book and Autotrader. However, Jon McNeill, president of global sales and service, is leaving the company. McNeill is becoming chief operating officer of ride-hailing app Lyft. "We have to solve passive optical extremely well", Musk said, referencing running image recognition based on camera data.
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