Tesla shares ended 1% lower during Monday’s after-hours trading following the release of the company’s third quarter deliveries. The stock of the American electric automobile maker ended lower at around $337.90 per share from having previously traded higher at $341.53.
Last week, Tesla shares recorded their second week of decline and was down by around 4% by the end of the week due to a number of analysts downgrade. Although some are still holding positive views and ratings on Tesla’s stock, some have commented that the company’s massive cash burn remains to be an issue along with concerns that the company may not be able to meet its own delivery targets for the year.
A few months ago, Tesla officially released its Model 3 vehicle which happens to be the company’s most affordable unit at a starting price of $35,000. The unit which received more than 400,000 in pre-orders continuously received more orders following its initial release where the company recorded a number of 1,800 in reservations per day.
The company then announced that they would expand their production and increase their targets before the year ends and continue increasing their production.
On Monday, the automobile maker released its delivery numbers for the third quarter. For the third quarter, the company was able to ship out 220 Model 3 units and was able to produce 260 units. This was shy from their previous statement that it could produce as much as 1500 Model 3 cars for the quarter. Tesla also projected a production of 5,000 Model 3 cars per week before the end of the year and around 10,000 cars by next year. Tesla has also projected before that it intends to produce around 500,000 cars next year which is a huge jump from the their total deliveries of almost 80,000 during 2016.
Tesla which has been known to have previously missed its own targets in the past. Last year, the company missed its total delivery targets by a couple of hundred sending its shares tumbling. The company who has been preparing for the Model 3 production and launch since last year has then opened a gigafactory among many other efforts in their preparation for the Model 3 release.
According to the company, a number of their production took longer than they anticipated despite their California car plant and Nevada Gigafactory working at a full speed.
The deliveries for the third quarter disappointed most analysts sending the stock down during Monday’s after-hours trading. Meanwhile, some analysts were not surprised with the missed deliveries due to the fact that this batch was the first huge number they have embarked on.
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