On the plus side, deliveries of the Model X to Chinese buyers was announced in the first quarter and deliveries were expected to begin early in the second quarter, if not sooner.
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Greg Reichow, VP of Production, and John Ensign, VP of manufacturing, both resigned from the company.
Elon Musk’s Bioweapon Defense Mode was put to the test when a Tesla Model X was sealed in a plastic bubble pumped full of air polluted with harsh fine particulates. Given the company is facing production and quality issues with the Model X, today’s earnings release is being seen as a “non-event”. For some perspective, it took Tesla three-and-a-half years to sell 100,000 Model S cars.
Some analysts question whether the company will be able to handle a ten-fold increase in production, given demand for the Model 3, which has already received more than 325,000 reservations in the month following its unveiling on March 31.
Justin Sullivan/Getty ImagesTesla CEO Elon Musk demonstrates the falcon wing doors on the new Tesla Model X Crossover SUV during a launch event on September 29, 2015 in Fremont, California. But production and delivery rates are different animals.
For the first quarter, analysts polled by FactSet expect Tesla to have lost 60 cents per share on sales of $1.6 billion, compared with an adjusted loss of 36 cents a share in the year-ago quarter on revenue of $1.10 billion.
On the other hand, on Tuesday Stifel analyst James Albertine affirmed his buy rating, and defended the Model X.
In the same e-mail provided by Tesla, Reichow added: “My belief in Tesla’s ability to successfully deliver great cars and inspire the world to drive electric remains as strong as ever”. “We’re confident that with the strength of the team, high-quality manufacturing at Tesla will continue”. With the new, redesigned Model S, the company may give quarterly guidance of at least 20,000 deliveries.
Just hours before it was due to report first-quarter financials, Tesla Motors (TSLA) confirmed Wednesday that two of its key executives were leaving, sending its stock tumbling.
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Green Car Reports also mentioned that Tesla still has a long list of offerings for the coming years.
