Tesla Swings to $671M loss on Model 3 Delays

Tesla Swings to $671M loss on Model 3 Delays

However, investors didn't like what they saw and sent TSLA shares down almost 4% to $308 in after-hours trading Wednesday.

"We believe the Model 3 ramp is one to two months behind schedule, but are not concerned as TSLA successfully ramped production of the Model S and Model X, which are more complicated vehicles, and we are confident TSLA will achieve its production targets over the intermediate term", declared Ben Kallo, an analyst at Baird.

Tesla's negative free cash flow swelled to $1.4 billion, more than analysts had expected.

The Model 3, seen as Tesla's best long-term hope, is priced at about $35,000, about half the price of its high-end Model S auto.

Tesla reported a wider-than-expected third-quarter loss, the largest in its history.

Tesla expects to hit a Model 3 production rate of 5,000 vehicles per week by late Q1 2018. The share price has moved backward from its 20 days moving average, trading at a distance of -4.04% and stays -5.51% away from its 50 days moving average.

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The company produced just 260 Model 3 cars in September, which was waaaaaaaaaay short of the 1,500 vehicles it had hoped to produce.

Tesla said the main constraint was its battery module assembly line at its Nevada Gigafactory, where the company had to redesign part of the production process.

On the ratings front, Tesla stock has been the subject of a number of recent research reports. "Many Model 3 customers put deposits down on the vehicle more than a year ago before they even saw the vehicle, so it's clear Tesla buyers don't follow the usual logic-driven auto buying process".

CEO and co-founder Elon Musk has loudly and repeatedly promised total production of 500,000 vehicles in 2018, with 400,000 of them Model 3s.

As far as the company's earnings are concerned, Tesla posted an adjusted loss per share of $2.92 per share, significantly wider than the loss of $2.23 per share that Wall Street predicted. Finally, Vetr upgraded shares of Tesla from a strong sell rating to a sell rating and set a $320.97 price objective for the company in a research note on Friday, October 13th. Revenue rose 2% to $16.10 billion, beating the FactSet consensus of $15.52 billion, as 9% growth in premiums, fees and other revenue offset a 7% drop in net investment income. The company's revenue for the quarter was up 119.6% compared to the same quarter previous year.

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