Tesla Missed Production Goal For Model 3 In August

In August, Tesla Inc. fell short of its (TSLA) goal to produce 6,000 Model 3 electric sedans every week although that may not hurt its overall production goals for the third quarter.

Online publication Electrek, citing an unnamed source, reported that during the last week of August Tesla churned out 6,400 vehicles including 4,300 Model 3 sedans. That is under Tesla's stated goal to bring production up to 6,000 vehicles each week. In June, it was able to meet its production goal of 5,000 Model 3 units per week after dealing with a series of setbacks on the production line . The company has a goal of producing 50,000 to 53,000 Model 3 vehicles during the third quarter, which Electrek said the company is still on track to do.

Tesla Model 3 Production Should Meet Q3 Goal

As of the end of August, the green car maker produced about 53,000 vehicles during the third quarter with more than 34,700 of them Model 3 vehicles. With a full month to go in the quarter, Tesla appears to be in a good position given it has already produced the same amount of green cars it made in all of the second quarter, noted the report. If the current production rate continues, Electrek said Tesla should at the very least meet the low end of its production goal,  though its attempt to achieve a rate of 6,000 units a week which could mean better than expected production results for the third quarter. (See more: Tesla Building a New Delivery Organization.)

Musk’s Go-Private Tweets Costly Distraction?

While it's not clear what caused Tesla to fall short of its production goal at the end of August, the go-private drama of early August has led at least one Wall Street watcher to lower his production estimates for the Model 3. Last month Elon Musk, Tesla’s outspoken chief executive made headlines by saying on Twitter the company could go private. Musk said the financing was secured but walked that back after weeks of speculation about the funding for the deal. "What was at best a premature announcement has generated three weeks of distraction from one of Tesla's most important quarters to date," said Canaccord analyst Jed Dorsheimer in a research report covered by CNBC last week. "We feel less confident in the company's ability to meet it's 50,000 to 55,000 production guidance indicated at the end of [the second quarter]." Canaccord cut its forecast for Model 3 production for the third quarter to between 48,000 and 52,000 units. The analyst said that while Tesla was able to stem its burn rate in its second quarter, he thinks it is going through its cash at a rate that means the Model 3 has to be successful in order for the company to be profitable.

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