Tesla reaches the production target of 5,000 Model 3, but shares fall as analysts express doubts

Tesla shares fell on Monday, after the electric car maker confirmed that it was reaching its goal of producing 5,000 model 3 vehicles a week, but analysts wondered if this pace was sustainable .

The maker of electric cars, which has missed targets in the past because of the bottlenecks in production, said that he expected the production of his sedans mass reaches 6,000 per week towards the end of next month.

The company also said it expected net profit and positive cash flow in the third and fourth quarters, despite headwinds of probably higher tariffs on imports into China and the weaker US dollar. The company has reported net annual losses each year since its IPO in June 2010.

TSLA, -0.57%

dropped 1.1% in afternoon trading, reversing previous gains of up to 6.4%. It has risen another 34% in the last three months, but was down 6.1% in the last 12 months. In comparison, the shares of its rival General Motors Co.

GM, + 0.05%

climbed 13% over the past year, while the title of Ford Motor Co.

F, -0.52%

fell 1.8% and the S & P 500 index

SPX, + 0.05%

gained 12%.

General Manager Elon Musk had hinted that targets would be met, saying recently that opponents of Tesla would have been wrong, and said in a tweet Over the weekend, 7,000 cars were produced the week last.

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"The last 12 months have been some of the toughest in the history of Tesla, and we are incredibly proud of the entire Tesla team for reaching the production rate 5,000 copies of the 3 "model, the company said in a statement. "It was not easy, but it was well worth it."

Some industry analysts have praised the achievement, but remained skeptical that the rate of production could be maintained, considering that a new production line was built in three weeks. Jeremy Acevedo, director of industrial analysis at the automotive research and information company Edmunds, said the production goal was a "victory" for Tesla, but said that the real achievement will be if "The erection of a tent and the multiplication of teams are not necessarily signs of a company on a sustainable trajectory, but Tesla has proven at least in the short term that the Is serious about »Acevedo said: [TRADUCTION]

Eric Ross, of Cascend Securities, said that the number of 5,000 is" impressive ", given the difficulties that the company had to do However, since this has been accomplished in a parking tent with a largely manual labor, we are concerned that this is not a serial number, "Ross wrote in a note. to customers

.] CFRA analyst, Efraim Levy, downgraded Tesla to sell short, saying that he does not expect the current production rate to be financially or financially sustainable in the near term, but he expects the rate to become According to Levy, the company is asking for another $ 2,500 non-refundable deposit from Type 3 reservation holders, which "seems a little annoying" because it appears to be an "aggressive attempt to reach otherwise difficult goals." . Tesla said it produced a total of 6,944 vehicles in the last seven days of the second quarter, including 5,031 models 3 and a total of 1,913 S and X models. For the second quarter, Tesla produced a total of 53,339 vehicles, up 55% from the first quarter, including 28,578 models 3.

Deliveries totaled 40,740 vehicles, including 18,440 models 3, 10,930 S models and 11,370 X models. There were 11,166 Model 3 vehicles in transit to customers at the end of the second quarter, which will be delivered early in the third quarter.

The net number of model 3 bookings at the end of the second quarter was about 420,000, "Milestones and production capacity are great stories for insiders and investors in the industry but model 3 customers simply want the car they've ordered and have it at a higher quality than other mid-priced luxury cars. " Brian Moody, Editor-in-Chief at Autotrader.