Elon Musk gets real after Tesla shares tank

Elon got real with Wall Street analysts admitting that Tesla's production number had fallen far short of the 5k per-day he’d anticipated by the end of 2017.


November 3, 2017

Tesla shares dropped 5% in after-hours trading on Thursday, handing the electric-carmaker its largest loss yet — a $619.4m hit.

Elon got real with Wall Street analysts about the company’s recent inability to meet production goals, admitting that his production number had fallen far short of the 5k per-day he’d anticipated by the end of 2017.

What seems to be Tesla’s problem?

Battery production issues seem to be serving as their greatest roadblock. In particular, one of their biggest subcontractors failed to rise to the occasion, requiring Tesla to overhaul their entire software program.

According to Axios, Musk’s vulnerability hinted that he was frustrated with himself for not taking charge on the issue sooner, alluding that he may have been more hands-off on the Model 3 than previous endeavors.

The pressure’s on

Many analysts have speculated the Model 3 to be “make or break” for Tesla. With the onslaught of upcoming big projects hinging on the new vehicle’s theoretical success, Musk was really banking on the Model 3’s gains outweighing the costs, and having to scale back weekly production is proving to be a major hindrance.

That being said, Musk seemed to cap off his call on a more positive note, assuring that next earnings call would be much better.

There’s that classic Musk-confidence. You WILL do better. We believe in you. Puff that chest out, big dog!

Daily briefings, straight to your inbox

Business and tech news in 5 minutes or less

Join over 1 million people who read The Hustle

Psst

How'd Bezos build a billion dollar empire?

In 1994, Jeff Bezos discovered a shocking stat: Internet usage grew 2,300% per year.

Data shows where markets are headed.

And that’s why we built Trends — to show you up-and-coming market opportunities about to explode. Interested?

Join us, it's free.

Look, you came to this site because you saw something cool. But here’s the deal. This site is actually a daily email that covers the important news in business, tech, and culture.

So, if you like what you’re reading, give the email a try.