Tesla down 5% after delaying Model 3 production targets -- Call notes
- Sees 5K unit Model 3 weekly production rate by March -- will be in the thousands by the end of the year but too much uncertainty to give anything more specific -- ramp is exponential. Having issues with two of four factory module assemblies; had to re-write the software for one after a sub-contractor dropped the ball. Have it figured out now, just gonna take a few extra weeks. Automated production line makes it more difficult when something goes wrong; will benefit speed and margin once everything online
- Questions journalistic integrity regarding reports of unfair lay-offs
- Will be able to full autonomy with current hardware; question is how reliable and whether regulators be satisfied
- Model S sales is beating all the other non-EV large luxury sedans.
- Cash flow will improve in the coming quarters
- Holds off on FY18 cap-ex but likely similar to this year
- Plans to start production in China in ~three years
- Will update production rate in Q4 delivery announcement
TSLA -5% at four-month low after approaching support near 300 premarket.