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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


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