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Tesla misses first major Model 3 goal in worst financial quarter ever

Tesla misses first major Model 3 goal in worst financial quarter ever

But the company clarified Wednesday that its Gigafactory plant in Nevada, which assembles battery packs for the Model 3, is "the primary production constraint" for the cars.

Tesla Inc on Wednesday pushed back its target for volume production on its new Model 3 sedan by about three months, saying that while progress fixing bottlenecks was made, it was hard to predict how long it would take for all production issues to be fixed.

Big Picture: Tesla stock is falling as production of the Model 3 has been slow.

Model 3 production delays mean postponed sales could exacerbate the company's cash burn, which Tesla estimated at $1 billion in the upcoming quarter. The company now plans to produce 5,000 Model 3 sedans per week by the end of the first quarter in 2018 - a target it had initially planned to achieve in December. The problems could also worry the over 500,000 customers who have put down a refundable deposit on the vehicle. Tesla said it was redesigning two parts of the battery assembly process, "key elements of which were done by manufacturing systems suppliers", to streamline its automated manufacturing process.

Despite the production woes, Tesla has still had a phenomenal year in terms of stock performance.

Tesla's soaring stock has made the company the second-most valuable US automaker behind General Motors Co (GM.N), which had annual net profit of $9.4 billion in 2016.

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Results from electric cars maker Tesla Inc (NASDAQ:TSLA) are likely to be all about the ramp-up of production of the new model 3.

Tesla ended Q3 with a cash balance of $3.5B. It also spent $325 million to repay a credit facility in the quarter.

Based on figures in Tesla's latest earnings letter, the company isn't expecting to reach its initial goal of making 5,000 Model 3's per week until sometime next year.

In Russia since the beginning of this year, dealers sold 46 new electric vehicles from the American company Tesla.

Revenue rose 30 percent to $2.98 billion. But the company produced just 220 Model 3s in the third quarter, far less than the 1,500 Musk promised. Following the completion of the sale, the vice president now owns 1,736 shares of the company's stock, valued at $589,354.64. The electric vehicle producer reported ($1.33) EPS for the quarter, beating the consensus estimate of ($2.00) by $0.67.

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