[ad_1]
Goodbye color options
Shares of Tesla Inc. (TSLA) fell back on Tuesday in pre-market trading, after founder and CEO Elon Musk said the automaker was reducing color choices on some of its models to simplify production. The group is struggling to meet aggressive delivery targets.
Musk said that two of the colors removed from the base of seven choices available – obsidian black and silver metal – would still be available to potential buyers, but at a higher price than other models. The decision follows one of the best days for Tesla shares for nearly a month yesterday as investors reacted to analysts' reports that the Palo Alto, California, group would meet the model's production targets. 3 in the second half of this year.
"We're about to have the most amazing quarter in our history, building and delivering more than twice as many cars as last quarter," Musk wrote in an email to employees that was widely aired on Monday. .
Displacement of 2 colors on 7 of Tesla Wednesday to simplify the manufacture. Obsidian Black & Metallic Silver will always be available as a special request, but at a higher price.
– Elon Musk (@elonmusk) September 11, 2018
Tesla shares were marked Tuesday by a 2.27% drop in the pre-trading market in New York, indicating an opening price of $ 279.01 each, which would leave the stock with 16 dollars more than Friday's low. goal to take the private company at $ 420 per share.
Tesla said its target of producing 5,000 vehicles a week was exceeded in July, with Musk saying the group would increase production to 6,000 a week by the end of August. The closely monitored Bloomberg Model 3 production monitor, however, suggests that the current pace is about 3,500 per week in its Fremont, California plant.
Tesla shares have fallen about 18.6% since the beginning of the third quarter and plunged Friday to the lowest level in five months following the announcement of a key-seller pursuing key the automaker for misleading investors. a private interview and a radio interview that raised further questions about the judgment of founder and CEO Elon Musk.
Prolonged shares also decline after the company said its chief accounting officer, Dave Morton, had resigned after less than a month of work.
Analysts expect the group to report a loss of 42 cents a share in the third quarter next month, before rebounding to 74 cents a share in the last three months of the year. ;year. However, with a cash consumption rate of $ 739 million in the last quarter, any possibility of making profitability estimates will depend on the group's ability to bring Model 3 production closer to its target of 6,000 in order to generate final sales. Faster and higher quarterly cash flows.
"It took 15 years to achieve our initial goal of producing an affordable long-range electric vehicle that can also be very profitable," Deepak Ahuja, Chief Financial Officer of Musk, said in a letter to shareholders this summer. "In the second half of 2018, we expect, for the first time in our history, to become both profitable and profitable."
To be a profitable investor and create wealth in the long run, you need the right information and techniques. Join TheStreet on October 13, 2018 for a special investment event for sophisticated and active traders. Sign up for "Invest Like the Pros: Boot Camp for Jim Cramer Investors" here.
[ad_2]
Source link
