Why Goldman Sachs Worries That Tesla Shareholders Could Get Slaughtered
- Author: Ronnie Bowen Jul 07, 2017,
Jul 07, 2017, 0:43
Tesla said it delivered just over 22,000 vehicles in the second quarter, of which just over 12,000 were Model S and just over 10,000 were Model X. This represents a 53% increase over the second quarter of 2016.
In Q2, the company produced nearly 25,700 cars, but the production shortfall of 100kWh battery packs dragged down deliveries to 22,000 vehicles, a significant drop from record deliveries of 25,000 cars in the previous quarter. No injuries were reported in both the cases, but Tesla said it wants to remain "overly cautious" about any safety concerns. With prices slated to start at $35,000 before any incentives or options, the Model 3 is the youngest publicly traded USA automaker's best chance at mass-market penetration.
Tesla Model X. Image source: Tesla.
The average of these targets is $281.79, which is still a lot lower than the current price of $327.09 that the stock settled at after a 7 percent drop today.
The Tesla Model 3 will be priced at $35,000.
Last month, during their shareholder meeting, Musk said they kept the initial configurations of the Model 3 simple. "Handover party for first 30 customer Model 3's on the 28th!" But its bigger news is production of the new Model 3 is on track to start in July, a target we do not believe most thought would be met just 3-6 months ago, and representing Tesla's first vehicle to genuinely launch on schedule.
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She said that would make "the unthinkable" such as delaying pension payments or not paying state workers very likely. House Democrats are advancing legislation this week created to get a budget deal by appeasing Republican Gov.
Tesla's shares are shaping up to possibly have their worst week of the year so far as lower-than-predictable production, raised competition and a review from an industry group weigh on the electric carmaker.
In latest trading session, Tesla, Inc.
Musk said at the launch, "You will not be able to buy a better vehicle for $35,000 or even close, even if you get no options". Not only that, Tesla is stronger than ever for the next two outing stocks on July 28th and December respectively.
The mid-range model, unveiled in March 2016, is a crucial piece of Musk's ambitions to transform Tesla into a large-scale auto manufacturer.
Let's briefly compare Tesla Model 3 to Model S. The Model 3 is smaller than and according to Elon Musk it's the more accessible version of the Model S. The Model 3 has more modest range and fewer functions than Model S. Tesla says the Model 3 will be equipped with an autopilot, but it will not have any other impressive features.