The Model 3 - heralded as Tesla's first "mass market" auto - has plagued the company since its launch.
With the 5,000/week threshold now in the books, and with Tesla now claiming that a production rate of 6,000 Model 3 units per week will be hit later this month, Tesla investors certainly have much to cheer about. "We'd like to thank Doug for his hard work over the years and for everything he has done for Tesla", said a Tesla representative in a statement to Roadshow.
FILE PHOTO: A row of new Tesla Model 3 electric vehicles is seen at a parking lot in Richmond, California, U.S. June 22, 2018.
While production hiccups have led to tumultuous periods for the shares, they're now up 10 percent this year, and the company is valued at $58.2 billion. That was responsible for around 20-percent of the Model 3 produced in the final week.
Tesla is likely to announce production and delivery numbers for the quarter later this week, and investors will watch to see whether the company can keep up its end-of-quarter production speed and increase efficiency to produce the cars at a profit. Customers have been putting $1,000 down payments on the Model 3 since past year, and demand far outstripped supply. In a note obtained by Marketwatch, Levy explains that the production rate isn't "operationally or financially sustainable". Amid a cash crunch, Tesla has focused on Model 3 options with sticker prices in the $65,000+ range, as opposed to the more affordable $35,000 base model, which it has yet to begin building.
While it produced 53,339 vehicles, Tesla said it delivered 40,740 vehicles.
TipRanks indicates Wall Street is evenly split between a battle of bulls vs. bears on this electro vehicle giant giant.
As of the end of Q2 2018, Tesla had 11,166 Model 3 vehicles and 3,892 Model S and Model X in transit to customers, with deliveries expected to be scheduled sometime early in the third quarter. Tesla "expects that number to grow faster than the production rate When we start to provide customers an opportunity to see and test drive the vehicle at their local store".
"This is very positive news for Tesla because the Model 3 takes them from a niche core producer to a mainstream automobile manufacturer", Tigress Financial Partners analyst Ivan Feinseth said.