Since the start of this year, we mostly heard of big promises and ambitious plans, which were great to make Tesla the most valuable automaker in America. However, the recent $619-million quarterly loss and low production volume of Model 3 hit the company hard as its shares took a plunge of 17%. Bear in mind, we saw the automaker reporting $22-million net profit last year.
The company blamed the sluggish production of Model 3 on Nevada battery factory. The automaker only produced 260 Model 3s against its claims of 5,000 units per week. Though it seems the company is in a deep trouble with labor issues, layoff, and possible unionization, they are doing their best to ramp up the production. They have recently used $1.4-billion for this cause.
However, we cannot disregard the fact that company’s ambitious plans would need a lot more than cash to meet the production milestones. Do not forget the company received $1,000 deposit from around 500,000 customers on its debut and also have plans to construct an autonomous semi truck along with full autonomous Model S and Model X. Whether, they would be able to pull off a miracle, only the time will tell.