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Tesla shares closed at 288.50 dollars Wednesday before the publication of their results, down more than 20% from early August. The stock was up 10% in after-sales trading.
Tesla is expected to start producing a more affordable version of Model 3 at a price of $ 35,000, and Mr. Musk said Tesla would lose money with this model if the company produced it now. The less expensive model 3 is important because the $ 7,500 federal tax credit available to Tesla car buyers will be halved on January 1 and will be fully phased out in 2019, making the company's cars more expensive.
Tesla has recently started offering a model 3 priced at $ 46,000 on a provisional basis before it can produce the $ 35,000 version. "We do not really have the capacity to reach $ 35,000 right now," Musk said, but said Tesla was "probably less than six months from that."
Although Tesla has finally reached its production rate, "the company has not left the woods yet," said Jeremy Acevedo, head of sector analysis at Edmunds, an expert in market research. "The Model 3, worth $ 35,000, remains a fantasy and, with the total tax credit for this car currently on the market, it will be interesting to see how many buyers are ready to wait until it becomes a reality. "
The company is still struggling to deliver the cars to customers, which Mr Musk has described as "a hell of a logistics delivery." The quality of the model 3 was also questioned, many customers complaining of receiving cars with scratched paint, cracked windows and other defects.
On Wednesday, Consumer Reports lowered Tesla's reliability ranking by six places to 27th out of 29 manufacturers. According to the magazine, its members complained about the suspension of the company's full size sedan, Model S.
The results report comes after several hectic months for Tesla and Mr Musk. Last month, the Securities and Exchange Commission sued Mr. Musk, accusing him of securities fraud for say on Twitter that he had "secured funding" to take Tesla in the private at $ 420 per share. The plan proved much less elaborate than he had suggested.
To settle the case, Mr. Musk agreed to step down as President while retaining the title of Director General. The second. continues to review the company's past claims about its production goals, and the Justice Department also reviewed the privatization tweet of Mr. Musk.
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