Tesla blames battery delays for dip in Q2 deliveries

Tesla Model S Model X get power boost in latest update

Other plans that Tesla has excluding the Model 3 within the next 18 months include gross margin expansion, gigafactory construction, accelerating growth of Tesla Energy sustainable fuel business, and a potential Model Y semi-truck. Musk announced the news on Twitter. The Swedish brand, owned by China's Geely, is the first manufacturer to make such a move.

Tesla will start Friday, with two weeks ahead, production of the Model 3, the mid-range electric auto with which the California manufacturer wants to conquer the general public, announced Monday CEO Elon Musk.

Tesla (TSLA) got a price target Wednesday while Oracle (ORCL) was upgraded on the company's cloud offerings and Novartis (NVS) was downgraded. By 2018, the company aims to produce a total of half a million cars which is a huge jump from their production of 76,000 cars past year falling short of their 80,000 target.

Musk's ambitious production target rate has anxious investors recently since the company has not been able to meet the previous deadlines religiously.

Model X went on sale in 2015 and was plagued by production problems, which Tesla addressed in its press release on Monday. Tesla says at least 400,000 people have paid $1,000 to reserve the right to purchase the Model 3.




Indeed, the Model S P100D could smoke Italian and German supercars right off the line, reaching 60 miles per hour in just 2.34 seconds at the moment of release.

"While it is nice to see Tesla finally hit a stated target on time, we question whether 30 vehicle deliveries essentially built by hand count as "mass production, '" said Jeff Osborne of Cowen".

The Model 3 has sparked strong demand and customers placing orders now are told they can expect delivery sometime in mid-2018. In August, 100 cars will be produced and more than 1,500 by September.

Tesla was valued at almost $60 billion on Monday on Wall Street, compared to $53 billion for GM and $45 billion for Ford.

Tesla shares fell 7.2 percent on Wednesday after a Wall Street analyst forecast that a sizable slowdown in growth could cut the electric-car maker's stock price by almost 50 percent. With Model 3 now starting, we expect 2-3 years of upside leverage to also now start as volumes ramp off Tesla's high fixed-cost structure, prompting us to reiterate our BUY rating and increase our price target to $430 from $380; equivalent to a P/E of 22x our 2020E EPS estimate of almost $20 and 10x EV/EBITDA, or a 29x P/E discounted back at 10%/yr. Do you think it is possible?

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