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Home>UPDATE: Tesla could be behind schedule on Model 3 production, analyst says

UPDATE: Tesla could be behind schedule on Model 3 production, analyst says

UPDATE: Tesla could be behind schedule on Model 3 production, analyst says

10/02/2017

By Claudia Assis, MarketWatch

Any stock weakness, however, is buying opportunity, Baird says

Tesla Inc. could be short of its Model 3 production goals, but any stock weakness is an opportunity for investors to buy shares, analysts at Baird said in a note Friday.

"We speculate (Tesla) may be behind on the Model 3 ramp," potentially reporting 300 to 400 vehicles delivered against expectations around 500, "although we would be aggressive buyers on any (share) weakness," the analysts said.

Tesla (TSLA) is likely to report third-quarter deliveries this week. Unlike other car makers, the Silicon Valley company does not report monthly sales, and the quarterly delivery numbers are a closely watched proxy for sales.

Third-quarter deliveries will show at least a smattering of Model 3 sedans, the all-electric sedan aimed at the masses unveiled in July. Tesla has said it would begin to scale up Model 3 production in the fourth quarter.

See also:Tesla car population will explode within a few years, Morgan Stanley says (http://www.marketwatch.com/story/tesla-car-population-will-explode-within-a-few-years-morgan-stanley-says-2017-09-26)

"We believe Q3 will be the most challenging part of the Model 3 production ramp, and although we model 500 Model 3 deliveries, we think (Tesla) may be several weeks behind and likely missed" its third-quarter target of about 1,500 Model 3 sedans produced, the analysts said.

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