Elon Musk tells Tesla shareholders there is "decent shot" at record quarter

Daniel Fowler
June 12, 2019

Tesla CEO Elon Musk is assuring the company's shareholders that the electric vehicle maker is on pace to set manufacturing and sales records during its current quarter after a disappointing start this year.

After a hard loss-making first quarter that had Musk explaining the logistical challenges faced by the EV maker during the initial stages of the expansion of its "mass-market" Model 3 into China and European markets, the CEO was keen on Wednesday morning (Australian time) to assure shareholders that demand is not flagging.

A 31% fall in first-quarter deliveries stirred concern among investors over the appetite for Tesla's Model 3 sedans and its cashflow as it invests to ramp-up output and get cars out to customers on time.

Tesla's current quarterly records came during the final three months of a year ago when it manufactured more than 85,500 vehicles and delivered 90,700.

While the vehicle wasn't needed - and may have been more of a PR boost to Tesla than anything else - it seems that Musk is confident in Tesla's ability to make vehicles for sea as well as land.

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Baird analyst Ben Kallo, rated four out of five stars for his accuracy on estimates for Tesla, believes "bear arguments will be disproven in the coming weeks and months".

Musk also hinted that the company has a design for what he called a "submarine auto", which he believes would attract a small, yet enthusiastic, market.

At least eight Wall Street brokerages cut their price target for Tesla in May to an average of $280.31 a share, according to Refinitiv data.

Tesla's stock closed Tuesday's session at $217.10 per share, up 1.9 percent.

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