• 4 minutes Why does US never need to have an oil production cut?
  • 9 minutes French Fuel Protests
  • 14 minutes Oil Prices
  • 10 hours Pros and Cons of Coal
  • 58 mins Could EVs Become Cheaper than ICE Cars by 2023?
  • 1 hour Your idea of oil/gas prices next ten years
  • 10 hours US continues imports of Russian gas which it insists Europe should stop buying
  • 7 hours The Regime Doesn't Give Up: Rouhani Says Iran to Continue Oil Exports And Resist U.S. Economic War
  • 1 day Warren Buffett
  • 1 day Regular Gas dropped to $2.21 per gallon today
  • 4 hours Is California becoming a National Security Risk to the U.S.?
  • 4 hours Oil
  • 2 days WTI Heading for $60
  • 22 hours And Just Like That, Everybody Stopped Talking About $100 Oil
  • 2 days Trump administration slaps sanctions on Saudis over Khashoggi's death
  • 3 hours Plastic Myth-Busters
Trump Claims Victory As Oil Prices Plummet

Trump Claims Victory As Oil Prices Plummet

Oil prices have fallen over…

Russia Takes Major Leap In European Gas War

Russia Takes Major Leap In European Gas War

Though Turk Stream’s capacity is…

Goldman Analyst Skeptic About Tesla Model 3 Deadline

Elon Musk Tesla

A Goldman Sachs analyst that has been bearish on Tesla for years has written in a note to clients that the EV maker might once again fail to meet its production deadline for the Model 3, Bloomberg reports, citing the note.

David Tamberrino, who has maintained a “sell” rating on Tesla since February 2017, said that Model 3 deliveries are growing more slowly than they should, suggesting that investor expectations about the production rate of Tesla’s affordable model in the second quarter may turn out to be too optimistic.

Tesla has pledged to ramp up production of the Model 3 to 5,000 weekly by the end of this month. With several missed deadlines already, however, investors have the right to be skeptical despite assurances from Elon Musk that this time, the deadline will be kept.

Tamberrino wrote in the note that “Investor conversations on the stock have moved past the 5,000/week run-rate production target (as we believe most are giving the company credit for achieving this level entering third quarter) toward vehicle profit margins and conversion of Model 3 reservations to higher priced vehicles.”

In fact, Tesla is already selling higher-priced Model 3s and promoting new, even more expensive, higher-performance versions. Some have questioned the wisdom of doing this before meeting your own production targets, but Tesla has proven multiple times that it does not do things the usual way.

Related: Gasoline Price Set To Soar Despite OPEC+ Deal

Still, earlier this month it unveiled a new production line for the Model 3 at its Freemont factory. It is the third production line, and the fact that it was built in just three weeks suggests that this time, Musk may be serious about deadlines.

The company will be reporting second-quarter financial and production figures in early July. It has been plagued not just by delays in production, but also by several crashes that drivers have blamed on its Autopilot system, and most recently an employee sabotage.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Markp1950 on June 27 2018 said:
    Elon Musk sent a companywide email to Tesla Inc. employees responding to a Goldman Sachs analyst’s prediction that the carmaker will miss estimates with its crucial Model 3 sedan this quarter.
    -------->“They are in for a rude awakening :)”

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
-->