Tesla has reported scanty production issues and deliveries of cars have met with a delay. Sales are also diminishing. The Elon Musk company is in dire circumstances.
Tesla: Downfall in sale figures and more
The Elon Musk company stated that in the last 3 months it delivered 63,000 Model S, Model X, and Model 3(50,900 Model 3 and 12,100 Model S and X) from a total production value of 77,100 vehicles, falling short of the average distribution estimation of 73,500 done by the analysts.
The company in a statement said this is due to the “extensive increase” in deliveries in Europe and China, and the “many difficulties encountered for the first time”. Tesla quoted delivery bottlenecks in Europe and China as a reason for its lower delivery numbers.
Company’s stock also met with a downfall, its stock went down by 8.2%.
Morgan Stanley also made a cut in their price target on Tesla from $260 to $240 stating concerns over Tesla’s financial health.
Tesla’s slowing business is a big concern to the general the investor.
The firm said that it foresees its first-quarter profits to be “negatively impacted” by lower than expected delivery numbers and recent pricing changes.
Apart from this, the Elon Musk company is in a substantial debt trap. Tesla has to pay several billion dollars as due in coming years. Although the company said in a statement that they have enough cash on hand.
CEO Elon Musk is positive of the companies future he said he is optimistic about an uptick in profit for the company. Tesla will try to overwhelm the doom cloud that they are surrounded by. After the releases of the Tesla Model Y and a new pick-up truck, the firm will try to turn its fortunes around. But there lies a tough precedent awaiting them.