• 5 minutes Iran Says It Arrested 17 CIA Spies, Some Sentenced To Death
  • 9 minutes Will We Ever See 100$+ OIL?
  • 13 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 48 mins Iran Loses $130,000,000 Oil Revenue Every Day They Continue Their Games . . . .Opportunity Lost . . . Will Never Get It Back. . . . . LOL .
  • 14 hours Oil Giant Saudi Arabia Is Set to Start First Wind-Power Plant
  • 25 mins Renewables provided only about 4% of total global energy needs in 2018
  • 8 hours How is E&P of Marginal Oil on the UKCS Similar to the Shale Oil Operations in the US?
  • 1 hour So You Think We’re Reducing Fossil Fuel? — Think Again
  • 1 hour N.Y. Governor Signs Climate Bill
  • 9 hours Berkeley becomes first U.S. city to ban natural gas in new homes
  • 12 hours EIA Reports Are Fraudulent : EIA Is Conspiring With Trump To Keep Oil Prices Low
  • 3 hours U.S. Administration Moves To End Asylum Protections For Central Americans
  • 24 hours First limpet mines . . . . now fly a drone at low altitude directly at U.S. Navy ship. Think Iran wanted it taken out ? Maybe ? YES
  • 23 hours Today in Energy
  • 19 hours Which is a better domain name for OAPEC?
  • 16 hours Shale Oil will it self destruct?
Electric Vehicle Sales Are Exploding In Europe

Electric Vehicle Sales Are Exploding In Europe

European electric vehicle sales are…

It’s Time For A Fire Sale In U.S. Shale

It’s Time For A Fire Sale In U.S. Shale

The U.S. shale patch is…

Tesla Model 3 Faces Manufacturing Crisis

Tesla

The manufacturing of Model 3 sedans has slowed significantly in recent weeks, according to a report by Clean Technica.

CEO Elon Musk had promised to produce 2,500 Model 3 vehicles a week by the end of March, which is just eight days from today.

Fans of the brand argue that the Fremont, California, manufacturing facility should be able to pump out an adequate number of vehicles, but estimated figures do not reflect the ideal case.

Bloomberg’s best guess is that Tesla is building 810 vehicles a week, with 10,524 Model 3s built in total.

Tesla does not seem to be able to capitalize on demand in accordance with its pre-invested reservation system. A $1,000 reservation system creates a position on the waiting list that could be fulfilled sometime in the next year or so.

Investors tracking Tesla for an attractive opportunity will be left waiting for a while, according to the latest figures.

“We believe the company is tracking below its 2018 Model S/X guidance of approx. 100k units (an implied 25,000 per quarter). Further, while monthly Model 3 deliveries are showing sequential improvement, we estimate that they will fall well short of consensus expectations,” Goldman Sachs’ David Tamberrino wrote in a note to clients.

Related: North Sea Oil Has Escaped Its Death Spiral

According to Bank of America analyst John Murphy, Tesla still has time to get its business on track, but its margin for error is getting thinner by the day. The greenest customers are still expecting tip top service, after all.

“Despite being a growing top-line business in need of capital to fund its ambitious growth plans, we think investors may grow tired of supplying Tesla with incremental low-cost capital in perpetuity if investments fail to generate returns soon,” Murphy said.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play