Musk’s leaked email reveals Tesla to make record deliveries in second quarter

(Reuters) – Tesla Inc is well on the way to a record number of cars in the second quarter, the defeat of the 90,700 it sent to customers in the last quarter of last year, according to an internal e-mail from Chief Executive Officer Elon Musk on the staff.

A Tesla Model, the 3 sedan, the first car aimed at the mass market, is displayed during its launch in Hawthorne, California, USA March 31, 2016. REUTERS/Joe White

Musk the e-mail, widely posted on social media and authenticated to Reuters by a source familiar with the matter, also said the company had on the average produced 900 Model 3 cars per day in this week, bringing it a step closer to the goal of 7,000 per week.

Question for Model 3 sedan, and Tesla’s of other cars is moved to the top of the investors list of concerns around the company after it reported play in the first quarter, demand for his car against a background of the AMERICAN-chinese trade tensions.

Musk is fighting to convince investors that demand remains high for Model 3, a sedan aimed to propel Tesla to sustainable profit, and that it can be delivered efficiently and quickly to customers all over the world.

In the e-mail late on Wednesday, Musk also said the company had built more than 50,000 net new orders in this quarter as of Tuesday.

“It is the usual Elon Musk-scheme: distributed positive mood with good news. Elon is a marketing guy, but the Tesla, the reality is sobering,” Nord LB analyst Frank Schwope said.

The company faces major challenges, including the start of production in China, the overhauling of the US retail and the provision of services and the development of new models, including a high-volume Model Y SUV and a Semi-commercial truck.

Musk has in the past drawn by the U. S. Securities and Exchange Commission for the disclosure of Tesla’s production outlook on Twitter.

Under a deal with the SEC, Musk had agreed to a number of his statements reviewed by Tesla’s legal advisor for the publication, including financial statements and unreported production and delivery numbers.

It was not immediately clear if Musk e-mail to employees detailing of crucial delivery and production numbers in violation of the agreement with the SEC.

The regulator could not immediately be reached for comment, while a Tesla representative did not respond to requests for comment.

Tesla had reported 31 percent decline in the first quarter deliveries and had been warned that the earnings would be postponed until the second half of the year as it struggled with the transfer of Model 3 to China and Europe because of the longer travel time.

The carmaker is building a factory in China to produce Model 3 electric vehicles in the world’s largest auto market and in order to escape to an increase of the tariffs on cars imported from the United States.

Tesla shares, down for six consecutive sessions, as Wall Street worried about the future of the company and the ability to continue to invest, an increase of 3% shortly after Reuters published on the confirmation of Musk-mail. They had been trading around 2.5%.

“While we are critical of Tesla’s execution, we think people are so eager to assume that the worst-case scenario,” said Roth Capital analyst Craig Irwin, who has a neutral rating on the stock.

“Tesla is the EV market leader for a reason, and we expect that the company will continue to be successful.”

Reporting by Vibhuti Sharma and Sayanti Chakraborty in Bengaluru; Editing by Bernard Orr and Anil D’silva

Follow us

Don't be shy, get in touch. We love meeting interesting people and making new friends.

Most popular