Tesla's future as a mass market car company depends on efficient and automated production of model 3. Tesla will lose…
Tesla’s future as a mass market car company depends on efficient and automated production of model 3. Tesla will lose $ 6,000 for every 35,000 USD model 3 it sells, says UBS analyst Colin Langan. It only breaks if the car sells over $ 41,000. Tesla has not yet produced $ 35,000 model 3 model.
Tesla met the goal of producing more than 5,000 Model 3 vehicles in one week in the third quarter. It made 80,142 vehicles (including 53,239 Model 3) and struck Wall Street analysts’ expectations. But the company is nowhere near the 500,000 mark Musk promised in 2016. By the end of the third quarter, Tesla has produced 167,975 cars this year. To put it in context, Ford makes it many cars about every 1
Tesla promised investors that it will achieve positive cash flow and profitability in the second half of 2018. But some investors and analysts are deeply skeptical this will happen. Tesla’s debt will be settled soon: The company has to pay about $ 230 million in November, part of a $ 1.3 billion debt bill, which will apply in March 2019 according to AP.
Faith in Tesla CEO is tested as never before. Investors are cautious about their social media and legal battles, attitude to regulators and recreational use.
Many employees think Musk is crucial to the success of the company. They promise their creativity, sense of humor and inspirational numbers. Some credit his hands-on-management style with building a good business. A former Tesla and SpaceX employee, Spencer Gore, now Managing Director of Impossible Aerospace, explained:
“Elon Musk is in a position most people will never experience – trying to deliver an industry-defining product on a limited budget. can not afford to make decisions slowly or even always compassionate. When involved in low detail, it is to improve driving speed. For some engineers this can be frustrating, sometimes heartbreaking – but Elon’s unconventional style is what built Tesla we all chose us to join. “
But other employees describe how Musk’s leadership style has increased costs and complexity in the factories.