Tesla last week announced more than an 80% shortfall to Q3 Model 3 production guidance of 1.5K cars, and yesterday disclosed a delay in its Semi reveal in order to better focus on Model 3 bottlenecks, and to provide assistance to Puerto Rico. The WSJ later reported the company as building major parts of the Model 3 by hand.
But, writes Grant, when Tesla reiterated production guidance in August, Elon Musk at that time surely knew his company wasn’t going to come anywhere close to 1.5K Model 3s by the end of September. And this is only the latest example in a string of disappointments.
With a $60B market cap, the company has been priced by investors for auto market domination, but how can that happen if Tesla can’t profitably produce enough cars?
“Tesla stock is valued as though the company can execute on its vision flawlessly. The facts suggest the opposite.”