Tesla sinks after employees say to expect more Model 3 delays

source
Markets Insider

  • Shares of Tesla lost more than 2% Thursday, bottoming out at $349.97, after employees told CNBC there would likely be more delays in Model 3 production.
  • “Scores” of anonymous employees have told reporter Lora Kolodny that previously disclosed battery production problems will slow down the mass-market sedan, Tesla’s cheapest model to-date and one that has already seen delivery delays.
  • CNBC also reports that Tesla has had to borrow employees from one of its suppliers to manually assemble the batteries as a temporary low-tech workaround.
  • In January, Tesla delivered just 1,550 Model 3 sedans – slightly more than half of the 2,917 expected by Wall Street. Last summer, CEO Elon Musk tweeted that the company should be able to reach 20,000 Model 3 cars per month in December 2017. That did not turn out to be true.
  • This latest slump will likely be welcomed by short sellers who have ratcheted up their bets against Tesla to more than $31 million, according to data from S3 Partners.