Model 3 is on target, says Elon Musk
- Author: Eleanor Harrison Jun 07, 2018,
Jun 07, 2018, 1:40
Tesla has repeatedly missed production goals for Model 3, meaning those who have put down a £712 ($1,000) deposit for one of the vehicles may still have to wait until the end of 2018 to get their hands on it.
Shares of the Palo Alto, California-based company rose as much as 1.7% in late trading after Musk commented on the likelihood that Tesla will meet the target.
Although the eco-friendly auto is one of Tesla's more affordable models, those looking to buy the vehicle may be waiting months before they can get behind the wheel.
"It's really looking like we're going to have positive GAAP net income next quarter, as well as positive cash flow, in Q3 and Q4", he said. "But I think we're getting there".
"The Model 3 ramp is understandably the central focus for investors as the company works to increase production", Baird Equity Research analyst Ben Kallo wrote in a research note.
Elon Musk said Tesla has experienced "the most excruciating hellish several months that we've ever had". Little is known about the vehicle at this stage, but Tesla founder and CEO Elon Musk has said it will have falcon wing doors (opening vertically, like on the Model X).
The fund also voted against the re-election of board member Antonio Gracias, but backed the reappointment of James Murdoch as well as Elon Musk's brother Kimbal.
Before the meeting started, one shareholder said the current board was "an obstacle, not an aid", to the electric vehicle makers success.
"Over the past year, Tesla has failed to hit critical production milestones and has consequently seen its past progress toward profitability sharply reverse", CtW said in a letter to shareholders.
The company said a "supermajority" of shareholders also rejected a proposal to force Musk to step down as Tesla's chairman, a position he has held since 2004 - four years before he also assumed the CEO job.
Meeting the goal of 5,000 Model 3s a week by the end of June is crucial to generating enough cash to sustain operations without having to raise more capital. "Next quarter, at the Gigafactory, we expect to make more battery capacity than all other EVs combined worldwide, including China".
Tesla has plenty of new products in the works, but one thing it will never build is a motorcycle, despite Elon Musk's penchant for biker jackets.
So the concept of circular accountability can (but not necessarily is) be lacking in some companies where a single person shares both roles, as is the case with Tesla. The company's structure requires two-thirds backing for a shake-up.