Could another missed production goal be enough to really change investors’ tune on Tesla?
Todd Lassa, Detroit Bureau Chief at Automobile Magazine, says falling short on Model 3 deliveries again might deal a blow to the electric automaker’s reputation.
“I think that it’ll affect perception more than bottom line, I think bottom line has always been troublesome over at Tesla,” he said. “We’re basically getting what we’ve always got from Elon Musk, but I think it’s finally starting to catch up to him.”
He points out that he’s long expressed concerns over Tesla’s ability to make money off its cars. In fact Tesla has only posted two profitable quarters in its nearly ten years as a public company, and in its most recent report it announced its biggest ever loss of more than $600 million.
It’s only been in the last few months, though, that the stock has pulled back, down 20 percent since hitting a record high in September.
“Maybe the investment community is catching up with us,” Lassa said.
Tesla has been spending heavily to match its aggressive production agenda, but some analysts aren’t convinced those efforts will pay off. KeyBanc Capital earlier this week slashed its forecast for Model 3 deliveries in the fourth quarter from 15,000 to 5,000.
To put that in perspective, Tesla originally said it would be rolling out 5,000 of the mass-market vehicles *each week* by the end of the year.
For full interview [click here](https://cheddar.com/videos/teslas-model-3-outlook-slashed).
Living in New York City, working full time and without a car, Jessica Ray and her husband have come to rely on deliveries of food and just about everything else for their home. It has meant more free time on weekends with their young son, rather than standing in line for toilet paper or dragging heavy bags of dog food back to their apartment.
Cheddar News checks in to see what to look out for on The Day Ahead as Campbell Soup and Vera Bradley are due to report earnings while economic data, including the April trade deficit and consumer credit, are slated to be released. And Wednesday is World Food Safety Day.
Financial services company Marqeta released its fourth annual state of payments report which reveals how widely Americans have adopted new technology like mobile banking and wallets. Marqeta CEO Simon Khalaf joined Cheddar News to discuss how common digital payments have become.
Katherine Rooney Vera, chief market strategist with StoneX, joined Cheddar News to discuss what investors should expect as the S&P closed near a nine-month high with volatility levels at their lowest level in over three years.
