Model 3 Production Impact On Tesla’s Stock Price


Tesla is trying out new delivery solutions in attempts to deliver more Model 3 units by the end of this quarter. The automaker is now doing ‘immediate deliveries’ of Model 3 on a ‘first come, first served basis’. The company said this at their recent delivery event in Fremont, California.

The Tesla delivery event also saw the company explain how day-one Model 3 reservation holders would be receiving similar opportunities via email. The email they have sent out states this:

“We have a limited number of Model 3 Rear-Wheel Drive vehicles on display that are available for immediate delivery.

As a first day reservation holder, you’re invited to take advantage of this opportunity on a first-com, first-served basis.

We will be extending this invitation to addition Model 3 reservation holders on Monday, September 10.”

Tesla has been developing Real-Wheel Drive Model 3’s which are not custom made for Model 3 buyers, up until now that it.

This news comes from Tesla as an attempt to increase more vehicles this quarter, it will be a record number of vehicles if Tesla manages to deliver them on target.

To cope with all these added deliveries, Tesla has created a new delivery organization to increase their capability to process a huge volume of vehicles. We are expecting to see Tesla produce over 50,000 Model 3 units in Q3. TSLA are trying to avoid scheduling delivery slots, because this makes their workload much heavier. Instead they are using a first-come, first-served delivery model to ensure the vehicles are delivered speedily.

Performance wise, the Model 3 is as high-performance as an EV gets, with 20,450 sales in August alone. General Motors has not compared very well to Tesla’s high sales volume (3,050) in August. The Nissan Leaf is not selling nearly as well as the Model 3, with 1,315 unit sales in August. So it is clear that Tesla is leaps and bounds ahead of its competition – sales wise.

How Does This Impact Tesla Share Holders?

Oppenheimer has stated that they have confidence that Tesla will meet Model 3 production targets. The TSLA stock price increased last Thursday once a report went public, stating that it dominated the electric-vehicles market in sales in August.

Tesla shares are constantly fluctuating between positive and negative lines, with it ending on the market at $263.24 today.

The past few weeks have been a rollercoaster for Tesla share holders, this volatility can be attributed to a few individual events:

Tesla Going Private Tweet

Tesla CEO, Elon Musk, tweeted that the company may be going private, at $420 a share. The stock price continued to fall as investors lacked confidence that the company had secured funding. Musk then retracted his statement about Tesla going private. This lead the Securities and Exchange Commission to investigate the matter.

Elon Musk Vs British Cave Diver

Musk accused British cave diver, Vernon Unsworth, of being a “child rapist” after calling him a “pedo” in July. Unsworth’s attorney announced that they will be suing Elon Musk for such comments. These comments were made on September 5, it is hard to decipher if the TSLA stock price was impacted due to these comments or Model 3 production worries.

Tesla Shares Goes Up In Smoke

After Musk was seen smoking pot on the Joe Rogan Experience, some investors didn’t quite know how to react.. so they sold. For long-term TSLA shareholders, this was not great news. But for short-sellers, this was the perfect opportunity to make a healthy profit.

One short-seller, Andrew Left, sued Tesla on Thursday after claiming that Elon Musk has manipulated Tesla’s share price. The alleged reasoning behind the manipulation was to short-sellers couldn’t make money on the stock. In the process, all Tesla shareholders were negatively impacted as false information was issued.

Executive Quits

Some high-profile executives at Tesla have left the automaker this past week.

The Tesla Chief Accounting Officer, Dave Morton, quit last Tuesday after only one month on the job. The reasoning behind the leave was attributed to the pressure that the company was under to perform. He is said to have no issues about Tesla or the company’s financial reporting.

Tesla’s HR chief, Gaby Toledano, has also left the company. The reasoning behind her leave is yet to be announced.

The real question is how much longer can Tesla last when performing at this level?

Will the Model 3 sales be enough to push the company’s stock price back into green? The next few months will be telling times for Tesla, as we see if Tesla hits Model 3 delivery targets.

Let us know your thoughts on the Tesla stock in the comments. Also, take a look at the history of Tesla’s stock price.