The production goal of Tesla, which is expected to last all night, fails to convince Wall Street

Tesla Inc burns midnight oil for Reaching a target of 5,000 model 3 vehicles per week has failed to convince Wall Street that the electric car maker could support this production pace, sending shares down 2.3 percent Monday.

Tesla reached the target by operating 24 hours a day for seven days, setting up a new production line According to the company and factory employees, a tent on the campus of its factory from Fremont and pulling out workers from other projects.

Tesla's heavily discounted shares climbed 6.4 percent to $ 364.78 early in the session. After several badysts wondered if Tesla would be able to maintain the model 3 production momentum, which is crucial for the long-term financial health of the company.

"Meanwhile, we do not consider this production rate as operationally or financially viable," said Efraim Levy, an badyst at CFRA. "However, over the time, we expect that the manufacturing rate will become sustainable and even increase. "

Levy reduced CFRA's rating on Tesla shares for the" sell "of" hold ".

Tesla, of which Elon Musk Sunday as having become a "real car company", she now hopes to increase production to 6,000 Model 3 a week by the end of August, thus confirming her confidence in solving technical and technical problems. Assembly Tesla has also confirmed a positive cash flow and profit forecast for the year and announced that Doug Field, Senior Vice President of Engineering, is retired after five years with the company

Tesla burned in cash to produce model 3. Problems with an excessive dependence on automation, battery problems and other bottlenecks have potentially compromised the position Tesla in the electric car market as many competitors prepare to launch competing vehicles.

million. Langan said that there was some relief that the company reached the production target of Model 3, he noted that vehicle shipments of 40,740 in the second quarter were missing his expectations of 51 000 and the consensus estimate of 49,000.

"We are very worried about the quality and if you read the reports online, there are significant quality problems.They still have not proved that they These calculations are very difficult to obtain a sustainable profit, "said Langan.

Model 3 production tripled to 28,578 in the company's second quarter from the previous quarter, Tesla declared.

The company declared 11,166 model 3 transit vehicles to customers at the end of the second quarter, and would be delivered early next quarter.

Reserves at the end of the second quarter stood at around 420,000. Tesla has delivered 28,386 model 3 cars to date. Model 3 bookings totaled 450,000 at the end of the first quarter.

The company expects orders to grow faster than the production rate, allowing potential customers to see and test models 3 in local stores. Originally, Model 3 was considered a $ 35,000 vehicle, but Tesla has not yet started building this basic version and is currently building a more expensive model while trying to get out of the market. 39: Production Hell