Tesla’s Stock crashed , a day after Elon Musk tweeted that Tesla’s Model 3 had passed all regulatory requirements and initial units would begin rolling off the assembly line on July 7.
Musk tweeted that Tesla’s first mass-market-vehicle will have a “Handover Party” on July 28 to deliver the first 30 Model 3’s to customers. Musk stated that weekly production will grow exponentially from 100 cars in August to 1,500 in September. He added: “Looks like we can reach 20,000 Model 3 cars per month in Dec.” That would meet the company’s promise to deliver 80,000 vehicles by the end of 2017 and 500,000 in 2018.
The tweet caused Tesla Inc’s (NASDAQ:TSLA) stock to jump by 2 percent, to over $370 a share at the opening of trading. But then the stock plunged to under $336 for a 5 percent loss by the end of trading, as critics reminded investors that Tesla is still losing about $30,000 on every car it produces, has never met a production schedule, and was only profitable in one quarter due to booking larger-than-normal government subsidies.
Tesla’s weekly production will hit 30 in July, 250 in August, 1,000 in September, 1,875 in October, 3,250 in November, and then 5,000 in December. That works out to 45,800, or about half company’s estimate. But is also would mean that Tesla will be short $1.8 billion in cash flow.