November 2, 2017
Updated 5mo ago
Tesla reported its worst earnings report yet after the bell Wednesday, and all eyes were on the production of its Model 3 vehicles. Elon Musk had promised to deliver 20,000 by the end of the year...so far less than 300 have been produced. On the earnings call, he blamed issues at the Gigafactory and the automation process for the "bottlenecking" of production. Todd Lassa, Detroit Bureau Chief of Automobile Magazine, joins Cheddar to discuss Musk's new goal of producing 5,000 Model 3's a week by March. He says he would be shocked if Tesla actually met that goal. Plus, Musk said the company would produce 10% fewer Model S and X's to focus on the Model 3. Lassa is surprised by this since those two cars are the company's money makers. And guess what? Tesla is running out of cash. It reported it's going into the next quarter with $3.5 billion, but Lassa doesn't this is enough to support the company much longer. When it comes to China, Musk predicts Tesla will start production on vehicles in three years. Lassa believes that's way too late. Tesla also has to make the decision to either outsource its production or take on a 50/50 partner, per China's laws. As for Tesla's solar division. Lassa says it's running into the same problem in China, which is exporting solar panels to America at a much cheaper rate. Musk needs to infiltrate China, and he needs to do it fast.