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Tesla Model 3 production delay raises cashflow risks; shares down 3.6%

Tesla, headed by Elon Musk, has been struggling to overcome production bottlenecks

Reuters 

Tesla Inc shares fell as much as 3.6 per cent on Thursday, setting the company up to lose nearly $1.9 billion in market value after it pushed back a production target for its much-anticipated Model 3 sedan yet again. Analysts stayed upbeat, saying the electric car maker had finally set an achievable target for their mass-market sedan that is priced at $35,000. Investors, however, are likely to focus on how the delay will impact Tesla's cashflow, a big challenge for many quarters now. Tesla said on Wednesday it would likely build about 2,500 Model 3s per week by the end of the ...

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First Published: Thu, January 04 2018. 21:45 IST
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