Tesla stirred concern among some analysts and investors by producing just 260 of the 1,500 Model 3 sedans it had promised in the third quarter. Fred Katayama reports.
Tesla made only 260 Model 3 sedans in the third quarter. It had promised 1,500. The company said it's having problems with its manufacturing facilities. Initially, the news tanked the stock. But, later in the day, analysts said the shortfalls were normal for a fledgling car company, and the stock drop was a great opportunity to buy. Eventually, Tesla's stock rebounded. Cox Automotive's Akshay Anand. (SOUNDBITE) Akshay Anand, Senior Manager, Insights & Analytics at Cox Automotive (ENGLISH) SAYING: "Production issues aren't a huge surprise, honestly, with Tesla, or any other automaker, because there is so much that goes into production. I think that, you know, Tesla has had production issues the past with the Model S and the Model X. I think the key is though can they ride the ship going forward, because their success really does lay on on the Model 3. Tesla has to be successful with the Model 3 in order to be successful as a company." During Model 3 launch in July, Elon Musk warned of upcoming "manufacturing hell." But his company is still planning to produce 5,000 Model 3 sedans a week by the end of this year. In the meantime, Tesla's rival, General Motors, said it believes in all-electric future, and it's adding 20 new electric and hydrogen-fuelled vehicles to its lineup.