Detroit Bureau on Twitter

Posts Tagged ‘tesla model 3 production’

Tesla: No Subpoena from Justice Department — Yet

FBI interview former employees about Model 3 production.

by Michael Strong on Oct.26, 2018

The FBI is interviewing former Tesla employees about Model 3 production. Tesla officials say no company officials have been subpoenaed.

Tesla Inc. and CEO Elon Musk may have resolved their issues with the Securities and Exchange Commission, but an ongoing criminal investigation by the Department of Justice appears to be motoring along in high gear.

The company told the Wall Street Journal that it hasn’t been subpoenaed by the DoJ regarding potentially fraudulent claims made by Musk and the company about the Model 3.

Breaking News!

Officials at the Palo Alto, California-based EV maker say they cooperated with what they described as a “voluntary request” for documents from the Justice Department in September, a Tesla spokesperson told Reuters.  (more…)

Tesla Launches Lowest-Price Version of Model 3 Yet – But It’s Still Not the $35,000 Sedan Promised

New version actually will start at $45,000 before incentives – if fed tax credits will still be available.

by Paul A. Eisenstein on Oct.19, 2018

Tesla CEO Elon Musk made good on his prediction of 55,000 Model 3 sedans in Q3. Now he's offering lower-priced variants.

With production finally on the rise at its Fremont, California assembly plant, Tesla is expanding the line-up of Model 3 variants, CEO Elon Musk late Thursday announcing what he billed as the lowest-price version of the battery-sedan yet offered.

But potential buyers might need to check the fine print carefully. According to a tweet from Musk, the new version of the Model 3 will cost $35,000 with the “true cost of ownership is closer to $31k after gas savings.”

News Now!

But this is not the $35,000 Model 3 that Musk promised to build when the sedan was first unveiled two years ago, setting off a flurry of activity, with about 400,000 potential buyers eventually putting down $1,000 deposits. The list price is actually $10,000 more. (more…)

Wall Street Souring on Tesla

A good week gone bad.

by Paul A. Eisenstein on Jul.09, 2018

Tesla CEO Elon Musk is promising the company will be in the black by the third quarter.

What was supposed to be a great week for Tesla turned out to be anything but, with analysts and investors largely ignoring CEO Elon Musk’s jubilant announcement of hitting the company’s production target, instead turning increasingly bearish amidst a sharp stock sell-off.

The roller-coaster ride could continue during the next few weeks as Wall Street waits to see what Tesla will report when it releases its second-quarter earnings announcement. The company delivered record losses during the first three months of this year and is expected to remain deep in the red through the end of June. The longer-term question is whether Tesla’s rising production of the critical Model 3 battery-sedan will finally translate into the black ink and positive cash flow Musk has repeatedly promised.

Product News!

For now, however, it appears that a growing number of analysts aren’t particularly optimistic. Of the 31 analysts who cover Tesla shares, 10 now offer “sell” guidance, nearly one in three. A roughly equal number list TSLA shares as “hold,” with only a third now recommending investors “buy.” It is rare, according to the Bloomberg news service, for analysts to go with a “sell” rating, most signaling displeasure with “hold” guidance. (more…)

Tesla Reportedly Set to Miss Model 3 Production Milestone

New report says carmaker well short of 5,000 weekly target.

by Paul A. Eisenstein on Jun.29, 2018

Tesla CEO Elon Musk needed to add a fourth line to the company's plant. He didn't have room inside so he built a tent.

Stung by the slow rollout of its critical Model 3, Tesla has pulled out all the stops to try to boost production, even setting up a fourth assembly line under a tent alongside its Fremont, California plant.

CEO Elon Musk has promised to have 5,000 Model 3 sedans rolling out of the Fremont factory each week by the end of June, something critical to achieve his other stated goals of having Tesla in the black, with a positive cashflow, during the second half of 2018. The “production hell” of the Model 3 launch resulted in record losses for Tesla during the first quarter of the year.

Plug In!

But there are growing doubts that Tesla will meet its production target. And that would raise new concerns about its finances – including the potential need to go back for more capital this year as the company’s cash reserves dwindle. (more…)

Nearly 1 in 4 Tesla Model 3 Reservations Have Been Cancelled

Number could escalate as production lags, competition heats up.

by Paul A. Eisenstein on Jun.06, 2018

After its debut of the Model 3, Tesla logged about 400,000 reservations for the mainstream sedan — at $1,000 each. Now a quarter want their money back.

While Tesla hasn’t given out precise numbers, it’s believed to have quickly logged about 400,000 advance reservations for the Model 3 battery-sedan, each putting down a deposit of at least $1,000.

But the lengthy delays in getting large numbers of the Model 3 into production have been causing serious problems for Tesla, not the least of which was the record loss the company posted during the first quarter. And the problems could grow worse, even though Tesla CEO Elon Musk told shareholders at the company’s annual meeting on Tuesday that production will “quite likely” reach 5,000 sedans a week by the mid-year mark.

Electrifying!

Even if it continues to increase for the rest of 2018, the Tesla plant in Fremont, California, will end the year far short of the 400,000 Model 3 sedans that were expected to be produced for the full year. And with many of those holding early reservations now likely to wait until well into 2019 before they can take delivery, nearly one in four has cancelled their order and asked for a refund. (more…)

Tesla CEO Musk Survives 1st Big Challenge as Chairman as Model 3 “Quite Likely” to Meet Target

Shanghai, European plants could be announced within weeks.

by Paul A. Eisenstein on Jun.06, 2018

Tesla CEO Elon Musk beat back challenges to his role, while 3 board members were voted back in.

Elon Musk stared down a group of dissident shareholders on Tuesday, surviving the first serious challenge to his dual role as chairman and CEO of the California automaker, while three of his hand-picked board members also fended off challenges.

Musk, who has developed an almost cult-like following among investors and electric vehicle fans alike, has faced an unusual degree of scrutiny in recent months as a result of mounting losses, struggles with production of the Model 3 sedan and a series of widely reported crashes involving Tesla vehicles. But despite some opposition, the company’s annual shareholders meeting was largely focused on promises about great things to come.

News That Matters!

Musk promised that after months of what the CEO has dubbed “production hell,” the pace is picking up at the Fremont assembly plant and that production will “quite likely” reach his 5,000 vehicle-a-week target by the end of June. Meanwhile, he and members of his senior management team outlined other developments to come, including the launch of additional production plants that could substantially boost global demand.

(more…)

Tesla’s California Plant Shutting Down for Six Days

Soros buys $35 million in convertible bonds.

by Michael Strong on May.16, 2018

Tesla CEO Elon Musk plans to shut down the Fremont, California plant for six days later this month.

Tesla CEO Elon Musk isn’t just sleeping on the plant floor at the company’s Fremont, California plant hoping a solution to increase Model 3 production will come to him by osmosis — he appears to be trying.

Just a days after changing the company’s management structure to improve communication, he’s going to shut the entire plant down for six days at the end of this month to make changes with the goal of increasing production of Tesla’s first “mainstream” car.

EV News!

Earlier, the EV maker warned the plant would shut down for a total of 10 days to tackle manufacturing issues at the site. The issues have put Model 3 production well behind schedule, angering some who plunked down deposits and irritating shareholders and analysts. (more…)

Tesla Again Misses Production Target for Model 3

Output up, still 20% short of goal, according to Musk e-mail.

by Paul A. Eisenstein on Apr.02, 2018

Tesla is finally ramping up Model 3 production but still has a long way to go to meet targets.

Tesla shares took another 5% tumble on Monday after reports surfaced that the automaker once again missed its production targets for the much-delayed Model 3 battery-sedan.

Delays in the roll-out have hammered Tesla’s balance sheet, with some analysts expecting the California carmaker to have to go back for another fundraising round. It didn’t help to have Elon Musk post an April Fool’s Day joke indicating the automaker would be declaring bankruptcy.

Subscribe Now!

In an e-mal sent to Tesla workers on Monday, Musk said production of the Model 3 had reached the 2,000 per week mark at the end of the first quarter, but that is still short of the 2,500 target Tesla had projected back around the beginning of the year, and it is even more substantially behind the original target Tesla had laid out when Model 3 production began in July 2017.

(more…)

Tesla Misses By a Mile its Model 3 Target

Models S and X beat forecast, but slow ramp-up of smaller sedan poses big problems.

by Paul A. Eisenstein on Jan.03, 2018

A new Model 3 in front of Tesla's Fremont, California assembly plant.

Despite promises by CEO Elon Musk, Tesla has yet to dig its way out of the “production hell” it has faced since the launch of its Model 3 battery sedan last July.

The Silicon Valley carmaker said it delivered just 1,550 of the “affordable,” long-range electric vehicles during the fourth quarter, well below what industry analysts had been anticipating. Some had forecast the numbers would come closer to 9,000 for the October-December quarter, with even pessimists forecasting something closer to 4,000.

Industry News!

The shortfall means that many of the roughly 400,000 customers who have plunked down $1,000 deposits for a Model 3 could be waiting well into 2019 before taking delivery, observers warned. It also raises the specter that Tesla might have to seek more capital to offset continuing losses. The company had said it would finally get into the black as production reached the longer-term target of 10,000 vehicles a week. (more…)

Tesla Purges Hundreds of “Underperforming” Employees

EV maker says workers will be replaced.

by Joseph Szczesny on Oct.16, 2017

Tesla reportedly fired hundreds of underperforming workers at its plant in Fremont, California, as well as its Palo Alto headquarters.

Claiming it was weeding out underperforming employees, Tesla dismissed hundreds of employees at its Palo Alto, California, headquarters campus and its Fremont assembly facility, according to multiple reports.

The San Jose Mercury News puts the number of firings at between 400 and 700 people, and they affected everything from factory workers to engineers to managers. According to that report, workers were not given advance notice of the decision.

News Now!

Tesla, in a statement, cited a company-wide annual review and said that it had not laid employees off, but rather that it let employees go based on lackluster job performance. (more…)