Tesla Short Interest Surges Ahead of Earnings

Time to talk about the Model Y?Tesla

Time to talk about the Model Y?Tesla

Tesla's quarterly revenue was up 43.9% compared to the same quarter past year. How many Model 3 reservations does Tesla now have on the books? This is much better than the all-time low of $252 from the beginning of April 2018, but still not as high as the $357 that the company was trading at near the end of February 2018. Musk expects the company to hit profitability in Q3. If Tesla can indeed pump out five thousand Model 3's a week, which Elon Musk will make sure the public is aware of if/when they accomplish this, then there really shouldn't be anything stopping them from finally turning around and profiting.

Tesla reported that it hit a production run high of 2,270 Model 3 vehicles per week in April.

In Q1, Tesla produced 24,728 Model S and Model X and 9,766 Model 3 vehicles, and delivered 21,815 Model S and Model X vehicles and 8,182 Model 3 vehicles - totalling 29,997 deliveries.

Mr. Musk has acknowledged that Tesla erred in trying to build a highly automated production line to assemble the Model 3, noting that getting robots and other machinery to work in harmony has proved to be more hard than he expected.

Importantly though, Tesla repeated its promise to be building 5,000 Model 3s by the end of the current quarter (second quarter).

That said, it might not make sense to open a second factory overseas while Model 3 production is still struggling at home. Hopefully things will continue to improve and Tesla becomes cashflow positive this year as it maintained it would.

Musk criticized the company's third-party suppliers in an April letter to Tesla employees obtained by Jalopnik, in which he expressed frustration with the number of contractors the company had used.

'Excuse me, excuse me.

Several analysts have claimed that Tesla will need to raise billions of dollars more this year, although Elon Musk has disputed this, claiming that because it expects to be cashflow-positive by the end of the third quarter, there is "obv [sic] no need to raise money".

But Model 3 production still isn't near the level of 5,000 per week that Musk promised previous year.

In the course of the conversation, Musk repeated his complaints about reports focusing on fatalities involving Tesla cars. For the next financial year, analysts forecast that the firm will report sales of $26.08 billion per share, with estimates ranging from $20.75 billion to $34.82 billion.

Problems with building Model 3s at a plant in Fremont, California, got so bad during the quarter that Musk has tweeted he's sleeping at the factory, automation is overrated and more humans are needed to build the cars. With more people involved in vehicle production, Tesla can dynamically adjust overtime hours and staffing levels to meet line goals. The biggest hurdles, he said, would be regulatory and that regulators would be influenced by the way the press treats the technology.

The carmaker has repeatedly missed production targets and did so again this quarter, although investors already knew this thanks to an update earlier in the year. If analysts don't ask those questions during the Tesla Q1 earnings call, investors should be upset.

During the call, Musk also elaborated on the Model 3's trend towards being the dominant midsize luxury sedan in terms of sales in the USA, besting competitors like the BMW 3-Series and the Mercedes-Benz C-Class. The Model 3 is priced against well-known competitors such as the BMW 3 Series, Mercedes C-Class, Lexus IS, and Audi A4.

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