Tesla’s Production Delays…Again

Investing.com - Several weeks ago, Tesla (NASDAQ:TSLA) CEO Elon Musk said that the Model 3 sedan was “deep in production hell.” That clearly seems to be the case. Tesla has more than 400,000 orders for the Model 3 sedan, but so far, only 220 cars have been delivered, a far cry from the 1,500 Model 3 vehicles Tesla said they would deliver in the third quarter. As a result, JP Morgan slashed their delivery forecast on Friday for Tesla Model 3’s in the next quarter by 50%, from 30,000 to 15,000 vehicles.Interestingly, just as Tesla would want to ramp up production, they reportedly fired hundreds of workers. Many of the jobs were in sales and administration, but the layoffs also hit the factory floor. Tesla’s Model 3 was hailed as the first mass-market electric vehicle. But big manufacturing delays would take away the company’s first-to-market advantage. There are also concerns that the production bottleneck could be tied to Tesla underestimating production costs. Such sentiments were echoed by Ryan Brinkman, an automotive equity research analyst at JP Morgan, who wrote in a note to clients that “if the vehicle proves structurally more expensive to manufacture…Tesla may need to increase the price of the vehicle to consumers, with negative implications for demand.”It’s probably too early to panic, but keep a close eye on Tesla when they report Q3 earnings on November 1st.

Begin trading today! Create an account by completing our form

Privacy Notice

At One Financial Markets we are committed to safeguarding your privacy.

Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.

Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.

Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.

By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Back to top

Office network
  • London Office
    One Financial Markets 

    1 Finsbury Market
    EC2A 2BN
    United Kingdom

    T:  + 44 ( 0 ) 203 857 2000
    E:  info@ofmarkets.com
  • Dubai Office
    One Financial Markets 
    OT19-39 Central Park Tower
    Dubai International Finance Centre
    United Arab Emirates
    T: + 971 44 22 888
    E:  info@ofmarkets.com

One Financial Markets is the trading name of Axi Financial Services (UK) Ltd, a company registered in England with company number 6050593. Axi Financial Services (UK) Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Sector Conduct Authority in South Africa (with FSP number 45784).

The information on this site is not directed at residents of the United States, Belgium, Poland or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

www.onefinancialmarkets.com is owned and operated by Axi Financial Services (UK) Ltd.

Award winning broker
We have been presented with a number of awards that recognise the quality of our service and dedication to our clients :

Best FSA Regulated Broker
Saudi Money Expo

Best Education Product
Saudi Money Expo

Best Broker - Online Trading
IAIR Awards

Best Institutional Broker
Saudi Money Expo

Best FX Services Broker
CN Forex

Top International
FX Broker 2015

Saudi Money Expo

Broker of the Year
Online Trading – Middle East

IAIR Awards

Best Forex
Customer Service 2018

JFEX Awards

We accept the following payment methods: