Tesla's slower ramp up in manufacturing Model 3s led analysts to speculate another capital raise could be coming.
Tesla is burning billions in cash as it struggles to achieve its vision of mass-market electric cars powered by Tesla-brand solar roofs through Tesla-brand home storage batteries. "They don't have a ton of wiggle room though in our view", Spak said. As we've talked about before, Jonas' approach to monitoring Tesla reminds us of a parole officer who falls in love with their parolee.
Initially, Tesla planned to roll out 5,000 Model 3s weekly by the end of the fourth quarter of 2017.
Tesla has fallen short of Wall Street expectations by revealing that it delivered just 1550 examples of the Model 3 in the fourth quarter of 2017.
It'll take Tesla another three months to double that number.
Tesla still has options for financing given its equity market capitalization, said John McClain, a money manager at Diamond Hill Investment Group. "But I would not question their ability to finance at this point". Instead, Tesla said it now plans to reach its goal of 5,000 vehicles per week by the end of the second quarter.
Tesla reports best year ever for deliveries, but falls further behind on Model 3 goals
The Model 3 is expected to arrive in the United Kingdom in 2019. Shares have been under pressure lately but still give the company a market value of about $53 billion, analysts say.
The company said another 2,520 Model S and X vehicles and 860 Model 3 vehicles were in transit to customers at the end of the quarter. "One you have it right you can ramp really quickly, but getting to that phase is the hard part".
Tesla's announcement "isn't much of a surprise" because of the automaker's previously known Model 3 production problems, but if the bottlenecks continue they could cause Tesla serious problems, said Jessica Caldwell, executive director of industry analysis at Edmunds.com.
The more gradual ramp is so the company can "focus on quality and efficiency rather than simply pushing for the highest possible volume in the shortest period of time", according to the release.
The company may need to raise another $1 billion to $1.5 billion over the next six months, Osborne said Thursday on Bloomberg Television.
Even with the super-cold weather hitting most parts of the USA right now, the Model 3 had its heater blasting away reducing the miles the electric vehicle could drive without charging. During the last week of December, the company said, it made 793 Model 3s. Tesla said it was its "all-time best quarter" for combined Model S and Model X deliveries.