Tesla Earnings Preview: Surviving Model 3 "Production Hell"

Tesla reports earnings after the bell November 1, and investors will be waiting for updates on how the company is navigating through its so-called "production hell". Christian Prenzler, Vice President of Business Development at Teslarati, a publication covering everything about the electric vehicle maker, joined us to discuss whether investors should steer clear of the stock going into the report. After falling short on Model 3 deliveries and production in its most recent quarter, Prenzler says all eyes will be on production updates. 2017 production issues were a hurdle for Tesla, but Prenzler sees them more as a speed bump than a long-term concern. In the recent quarter, Tesla manufactured just 260 Model 3 cars, well below its projection of 1,500 units. The electric-car maker created doubts that it would be able to meet the high demand for its newest vehicle, which has already attracted more than 450,000 reservations. Prenzler also hits on the role of solar energy in the big picture for Tesla. While it's a promising segment, he says energy is a very small piece of the pie. Prenzler compares Tesla to Apple, saying the energy business is like Apple Music, and the Model 3 is like the iPhone.
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