Today has been a good day for most tech stocks, but there is one name that is missing from the list of winners that has some investors concerned; Tesla.
CNBC reports that:
“Tesla is clearly running behind schedule with respect to the Model 3 ramp,” wrote Evercore ISI analyst George Galliers. “Clearly third-quarter production was weaker than Tesla expected with 260 Model 3s produced vs. a targeted ‘just over 1,500.’ And, at this point, we have little insight into how production is running.”
This is troubling news for one of the world’s most valuable car companies. So much is hinging on Tesla’s ability to deliver their more accessible Model 3 that this could affect the stock even more down the line.
Marketwatch says that according to analysts they spoke to:
The Model 3 is “the most important piece of the Tesla investment story in coming quarters,”
Despite the company’s tremendous developments in driverless technology and enhanced battery mileage, if it can’t sell cars it can’t make money. This has been a constant struggle for Tesla, and they have desperately tried to increase production by expanding their facilities to keep up with Elon Musk’s demanding targets.
CNBC cites one Goldman Sachs analyst David Tamberrino as saying there could be as much as a “40 percent share downside over the next year.” That means investors should be very careful and keep an eye on how the company continues to progress with their production targets. If things don’t change in a hurry, Tesla could see all of its stock’s growth from the year vanish into thin air.
To read CNBC’s article on Tesla missing the mark, click here.
To read Marketwatch’s article on Tesla’s lacklustre production, click here.
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