Can model 3 survive the controversy?



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Elon Musk is sued by the SEC

Can Tesla go through its many controversies and reach its sales goals? We are about to discover.

Early next week, Tesla will report the number of cars manufactured in the third quarter and the number of cars actually available.

Three months ago, investors and Tesla fans waited to see if the company could achieve its goal of building 5,000 Model 3 cars in a week. He has just achieved this goal by building 5,031 during the last week of June.

Experts say the third quarter production report is much more important for the company and its future. This will show whether the level of production at the end of the second quarter was a low or sustainable point.

"The idea of ​​sustained production is so much more important than a sprint of production in a week," said Jeremy Acevedo, head of industrial analysis at Edmunds. "The difference between 5,000 a week and 20,000 a month is huge."

And more importantly, it will show if You're here (TSLA) is on track to meet the promises of CEO Elon Musk that the company would be profitable in the third and fourth quarters. The company had only two unprofitable quarters as a public company and recorded its largest loss in the second quarter by ramping up production.

More Than $ 1 Billion Losses and Debts Expiring at Tesla This Spring Might Explain Tesla's Potential Liquidity Potential, Forcing It to Sell More Stocks to Generate Liquidity . This could be more difficult because the action is losing value and Musk is facing a federal lawsuit for misleading investors.

Musk insisted that the company will not need to raise funds as this will generate more revenue with increased production. But he also admitted that the company was struggling to deliver all the cars it was building.

"Sorry, we've gone from the hell of production to the hell of delivery logistics," tweeted Musk two weeks ago, though he promised: "We're moving quickly .

Needless to say, his customers waiting for their Teslas do not pay for their expected cars until they are delivered. Logistics problems could therefore constitute its own red flag for the company's revenue.

"The delivery and chaos that they are going through right now, it's disconcerting," said Rebecca Lindland, an analyst at Cox Automotive.

She said that if some Tesla fans wanted to focus on the number of reports reported, it's important to look at production and deliveries.

The most significant report of Tesla in its history has been overshadowed by controversy.

In August, Musk announced via tweet that he was planning to take the company at a price of $ 420 per share, and that he had "guaranteed funds" to do it. According to the SEC, some investors have expressed interest in financing such an agreement. He abandoned his plan to become private by the end of the month. But by that time, he had already been sued by shareholders who accused the tweet of being a misleading effort to manipulate stock prices. And on Thursday, the Securities and Exchange Commission filed an action against Musk, seeking to have him dismissed as a leader of Tesla or any other public company.

Add stories about Musk who does not sleep and smoke during a podcast, and about his other company SpaceX that sells a trip to the moon for a billionaire tourist on his other SpaceX company, and it's easy to forget how much of cars you can build and sell.

CNNMoney (New York) Posted on September 28, 2018: 3:47 PM ET

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