Tesla's Elon Musk dismissed concerns about possible delays involving the Model 3, which is slated to begin production this summer.
Tesla’s founder and leader Elon Musk dismissed concerns about the much-anticipated launch of its mainstream vehicle, the Model 3, this summer, noting the substantive differences between it and the preceding vehicles.
Musk noted during the maker’s Q4 earnings call, that the Model 3 is a much less complicated vehicle than its predecessors, lacking some of the gee-whiz technology like the self-presenting door handles.
Additionally, the company has a track record of success, in terms of production, so suppliers are providing the company with their “A-teams,” making for fewer problems and constraints. Finally, he noted that it’s the company’s fourth time through process and the learning curve will reflect that.
In terms of its finances, the California-based automaker returned to form, losing $121.3 million during the fourth quarter, or 78 cents per share. During the third quarter, the company was in the black posting a profit of $22 million, or $0.14 a share, which was a much-needed boost for a carmaker.
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While the losses are disappointing, it’s the news that EV maker is expecting to launch production of its mainstream vehicle, the Model 3, in July.
“Wall Street news aside, the real spotlight on Tesla remains its long-awaited Model 3,” said Michael Harley, executive analyst for Kelley Blue Book. “Musk has to take off his rose-colored glasses and focus on efficiently launching production of its most important vehicle to date.
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“If the company can’t meet its output goals of 5,000 units per week by the end of 2017, which is highly optimistic considering the obstacles it has faced with prior model start-ups, the stumble may be the fall that breaks the company’s knees.”