Tesla announced its initial results for the first quarter, failing to meet the company's target of producing 2,500 Model 3 per week by the end of the quarter, but better than investors expected.
Production of 9,766 Model 3 in the quarter, production of 2,020 in the past seven days, the next seven days is expected to produce 2,000 Model s, Xs and 2,000 Model 3.
The stock rose $13 this morning to $266, or 5%, trading between $254 and $270.
Investors expect Model 3 production to be around 1,500 a week at the end of the quarter, so 2,000 is definitely an advantage.
Given the 26% drop in the past five weeks, and the short-term interest in the stock, these results may help the stock find a new trading area, but it does not appear that a sharp rebound will occur.
Stocks may be in range.
Until the full quarterly results are released, Elon Musk can answer questions on the call.
There are some positive projects in Tesla's initial results, exceeding the production level of 2,000 Model 3 per week.
Whether the demand for Model S and X has stabilized, or why the production of Model S and X was limited in the third quarter, down 13% from a year ago and 23% from December 2017.
Tesla does reiterate that it plans to sell about the same number of Model S and X in 2018.
2017 or 100,000, so it should be able to make up for the shortfall in the next three quarters.
In its shareholder letter of December 2017, the company attributed the same year-on-year sales of Model S and X in 2018 to "being limited by the supply of the old 18650-profile battery.
As our sales network continues to expand into new markets in 2018, we believe orders should continue to grow.
As demand exceeds production, we plan to optimize the portfolio of options to maximize gross margin. ”It appears (
But I may not find the update)
Tesla signed a contract with Panasonic to supply 18650 batteries by the end of 2017.
Tesla is definitely getting them from someone, but it does raise the question, "because of the strong demand for high-margin cars, why is Tesla having problems getting them?
"Potential reasons include manufacturing a new 2170 form factor battery for Model 3 taking up the resources or precedent of Model S and X, or 18650 of the cost increased to S and X affected.
I have emailed Tesla to ask why the 18650 battery has been restricted for years.
I will update this article when I get the answer.
Tesla wrote in its third-quarter preliminary results press release, "net orders for Model S and X
Demand remained strong after a record first quarter.
Overall, orders for Model S and X seem to be strong.
In its quarterly letter of December 2017, it included "net orders for Type S and X combination in the fourth quarter are only full orders below the third quartertime high.
Importantly, the combined orders for Model S and Model X increased significantly in 2017 compared to 2016.
However, it is difficult to judge whether the net order has increased by 1%, 10% or more before reporting the figures.
A key question is why Tesla does not increase production if they are so strong.
Most companies respond to high demand. margin product.
Selling more Model S and X should help with the cash flow status of the company.
3 quarter: as of March 15, Tesla's 28-day transaction will take about 5 days to pay short-term interest.
4 million short circuit of its 0. 166 billion shares, or 17%, which is a very high proportion.
How many days does it take to "cover" short selling stocks, is the normal trading volume for how many days it takes to clear short selling stocks.
About 5 days for Tesla.
In contrast, Amazon, Apple, Google/Alphabet, or Facebook will take 2 days or less.
I would have expected the short replenishment to make the stock higher than it has been so far today, because in this announcement Tesla's stock was so negatively affected.
After falling $105 over the past five weeks, the stock has only risen $13, below my expectations.
It may rise as news is digested.
Other concerns may be to prevent stocks from rising. The biggest concern could be Tesla's car, which was recently involved in a fatal crash, and Uber, which also killed pedestrians.
Tesla is considered a leader in autonomous driving, so if there is a delay in implementing it, competitors may close the technology gap.
Tesla announced a recall of 123,000 Model s last week.
I don't think this is a major project, but it may put some investors on hold to buy shares.
A small project in the information report is Elon Musk taking over the management of Model 3 manufacturing.
If all goes well, you won't expect him to take on such a leadership role.