Tesla ships fewer Model 3 sedans than expected in last quarter

Elon Musk has jokes amid Tesla chaos

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Heading into the final week of the quarter, a Tesla executive urged line workers at the company's sole auto-assembly plant in Fremont, California, to safely ramp up Model 3 output to more than 300 a day and "prove a bunch of haters wrong". Production topped 2020 units in the last week alone but it is still far behind its targets. Among this number, 11,730 were Model S, 10,070 were Model X, and 8,180 were Model 3.

In an email to employees, obtained by Electrek, Musk has recently said that "It has been extremely hard to pass the 2000 cars per week rate for Model 3, but we are finally there". Tesla also says that in the next seven days it expects to produce 2,000 Model S and X vehicles and 2,000 Model 3 sedans.

That leaves us with Model 3 numbers: Tesla said it produced 9,766 Model 3 vehicles, up from an abysmal 2,425 it produced in Q4 2017.

Moody's dropped Tesla's credit rating March 30 and changed the company's outlook to negative as the fledgling Model 3's production dwindles while the automaker's financial situation grows dim. Tesla will need to raise more money in the near future to meet its cash needs, the credit rating agency claimed.

If Tesla can indeed maintain its current production rate, it will crush its last results and there is no other EV that is expected to catch up. The previous production target of 2,500 a week is easily forgotten. My job as CEO is to focus on what's most critical, which is now Model 3 production.

"Even if they're able to cobble together a couple of good weeks, that doesn't mean that the sustainable run rate will continue", Rusch said.

Both those ranges are significantly below Model 3 deliveries, but easily over Chevy Bolt EV sales.

"Taken as a whole", he wrote, "Tesla's forecast burn rate and debt maturities across 2018 and 2019 add up to around $5.5 billion". These vehicles will be delivered in early Q2 2018, which keeps us on track for our full-year 2018 Model S and X delivery guidance. "This is reflected in the overwhelming delight expressed by our customers with their Model 3s".

Reservations for the Model 3 "remained stable", with cancellations attributed "almost entirely due to delays in production in general and delays in availability of certain planned options". "Looking at it today we believe the demand outlook remains robust and unchanged", said Joseph Dennison, portfolio manager at Zevenbergen. The report compared that productivity to plants owned in the United States and Canada by Nissan and Honda, and the results weren't good.

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