Investors are shrugging off any concern over Tesla over-stretching its production and financial resources with the unveiling of new futuristic semi-trucks and a pricey sports car, with its shares advancing.
Chief Executive Elon Musk shocked industry-watchers by launching a $200,000 USD ($A280,000) sports car on Thursday, along with two electric trucks, possibly adding more logistical nightmares even as it wrestles with production issues related to its Model 3 sedan.
“But Chief Executive Elon Musk did not offer details about how Tesla would fund these projects, leaving Wall Street analysts skeptical about the company’s ability to ramp up production as it spends money at a quick clip,” reads a new report from Reuters.
According to the report, Tesla spent $1.1 billion USD on its automotive business in the third quarter, and expects expenses of $1 billion in Q4. The company had about $3.5 billion in cash and cash equivalents at the end of September.
At the company’s current rate, Tesla would likely be down to about $1 billion USD in cash by the end of the first quarter.
“In essence, all last night’s event did was add to Elon Musk’s shopping list of things he needs to spend money on at a time when the company is having difficulty making its base vehicle [Model 3],” said Cowen analyst Jeffrey Osborne.
Some analysts fear the trucks will be an expensive distraction for Tesla, which is burning cash, has never posted an annual profit, and is in self-described “manufacturing hell” related to the $35,000 USD Model 3 sedan.
Although Tesla has made inroads among luxury car buyers with its Model S sedan and Model X SUV, it is the Model 3 on which the company’s long-term success rests.
The Model 3 sedan is expected to go into production in 2018, electric trucks in 2019. Production for the new Roadster sports car, a likely Ferrari rival, will start in 2020.
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everyone is all over tesla’s nuts but all they do is announce cars that are years away and how many people are waiting for tesla 3? They are so far behind on that one and they are announcing more cars they probably will have to push back
Typical crowd of silicon valley techy sheep that Tesla knows how to manipulate. These people would spend 9 dollars on a fair-trade coffee and read Huffpost for breakfast.
Not enough manipulation, they’ve never posted a profit.
Tesla cars look amazing. But I don’t get why you announce other cars when the Model 3, which is the one that will mostly likely determine Tesla’s success of failure, is still facing multiple production issues and delays. Make one car right instead of announcing many while customers are waiting.
How ironic will it be when a petrol fuel car maker buys them out of bankruptcy! That is if the state of California doesn’t beat them to the punch!! Hahaha
Everyone in this thread: “Y u use assembly line to make 5 different autos, when you can’t make 1 auto on schedule?”
About the same level of intelligence as that truck driver that was on Fox Business News. People are willing to wait, because they’re tired of having to deal with the comparable garbage that other auto makers are currently offering. Show the people a good looking EV with fast charging infrastructure country wide, and maybe you’ll get some heads to turn.
So it’s fine to take money from buyers and promise they’ll get their car “one day” while going around announcing future production with that money?
You sound exactly a Ponzi scheme.
Yes because all the cars Tesla has produced so far are imaginary….god damn dipshit.