As Tesla Ramps Up Production, Investors Want to See Profitability
*By Conor White*
Tesla may have posted a record-breaking third quarter for production ー over 80,000 cars were built in the past three months, 50 percent more than its previous high mark set the period before ー but it seems investors have their doubts.
Shares fell more than 2 percent Tuesday after an encouraging [rebound](https://cheddar.com/videos/musk-settles-sec) the day before.
"This is a company that just seems to go from one crisis to the next," Investor's Business Daily senior reporter Brian Deagon said Tuesday in an interview on Cheddar.
The current issue: the ongoing trade war between China and the U.S. According to Tesla ($TSLA), it costs the company 55 to 60 percent more than Chinese automakers to produce "the exact same car," given the latest tariffs imposed by the Trump administration. That only adds to the company's ongoing financial strain and puts more pressure on CEO Elon Musk who in early August predicted a profit in the second half of the year.
"The company's got a cash flow problem," said Deagon. "They've got a huge debt they need to pay off in the next year and a half or so ー so profitability is going to be very important."
Tesla produced a grand total of 80,142 vehicles in Q3: 26,903 Model S and Xs and 53,239 Model 3 sedans. It also output 5,300 Model 3s in the last week of the quarter alone.
Those numbers were better than expected, but investors may not be so quick to forget the scandalous summer, starting with Musk's Aug. 7 tweet that he had "funding secured" to take Tesla private, a message that ultimately led to securities fraud charges and a settlement with the SEC this weekend that requires Musk to cede his chairman role for three years but allows him to stay on as CEO.
And Tesla still faces what Musk has called "delivery logistics hell." Many customers have said they're [still waiting](https://www.businessinsider.com/elon-musk-says-tesla-customers-may-get-delayed-response-2018-9) for their cars.
Deagon said despite his many obstacles, Musk still deserves credit for what he's accomplished so far.
"He's doing something nobody has ever done before," Deagon said. "He is completely, single-handedly almost, revolutionizing the auto industry ー converting it to all-electric."
"The guy's practically busted his brain in half trying to get everything together, but so far he seems to be pulling it off despite many bumps in the road," he added.
Despite the SEC's lawsuit, delivery issues, and Tesla's continued struggle to produce enough Model 3s every week, Deagon advised not to bet against Tesla, or Elon Musk.
"He continues to overcome these big obstacles," Deagon said. "And he has a history of that."
For full interview [click here](https://cheddar.com/videos/tesla-production-shifts-into-high-gear).
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A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
