Why it's a "Stretch" for Tesla to Turn a Profit This Year
Tesla shares rose more than two percent Friday after [CEO Elon Musk tweeted](https://twitter.com/elonmusk/status/984705630106673152) that the electric carmaker does not need more capital because it will turn a profit by the end of the year.
Not all investors bought Musk’s ambitious projections. “I think that’s a stretch,” said Gene Munster, the managing partner of Loup Ventures. He said in an interview with Cheddar that it would take Tesla “11 quarters” to reach profitability.
Munster compared Musk’s optimism with Apple’s Steve Jobs. “Jobs had this reality distortion field where he truly believed that things that were not happening could happen, and I think Elon Musk, for better or worse, has some of those same symptoms,” Munster said.
Tesla’s profitability likely depends on sales of the mass-market Model 3 sedan, but production of the car has been slower than expected.
Musk projected last December that the company could produce 20,000 Model 3 vehicles a month. But the company only managed to make 1,000 cars a week that month.
Supply bottlenecks for some parts has limited production, which barely reached 2,000 vehicles a week last quarter. Musk took charge of production management himself last week in an effort to ramp up production.
Munster said Tesla will eventually get to the 20,000 mark. “That’s not in the reality distortion field conversation,” he said. But Model 3 production delays are already a drag on the company’s stock.
Goldman Sachs this week lowered Tesla’s share price target from $205 to $195, citing difficulties with the Model 3.
For full interview, [click here](https://cheddar.com/videos/markets-recover-at-weeks-end).
Universal Music Group, which represents artists including Taylor Swift, Drake, and Ariana Grande, has removed its music from TikTok and accused the app of bullying and intimidation.
The average rate on a 30-year mortgage fell 0.06% last week. Although the rate is much higher than it was two years ago, the decline could relieve buyers already dealing with low inventory and high prices.
As millions of Americans are set to retire, John Carter, President & COO of Nationwide Financial, shares what to expect and how consumers of all ages can better prepare for their golden years.
The heated hearing began with recorded testimony from kids and parents talking about being exploited on social media. Throughout the hours-long event, parents who lost children to suicide silently held up pictures of their dead kids.
Adtalem CEO Steve Beard addresses a report from Safkhet Capital taking the short position on the for-profit education giant, plus why he believes there should be financial recourse for student loan borrowers misled by their institutions.
CEO of Americares Christine Squires shares how the organization is helping provide medical assistance in a time of increasing instability, war, and climate-related disaster.
Doug Clinton, Deepwater Asset Management managing partner, shares tips for investors looking to take advantage of the massive boom in artificial intelligence beyond Microsoft and Nvidia.
