Yahoo Finance Tesla (TSLA) Hikes Model 3 Production Target to 6K per Week
Tesla, Inc. TSLA set a target to manufacture 6,000 Model 3 cars each week by the end of June to meet its weekly target of 5,000 Model 3 units by the end of second-quarter 2018, per Bloomberg. The difference includes a margin for error of the product parts. The news was first tracked by Electrek from an email from the company’s CEO to the employees.
At the beginning of the month, Tesla reported unit productions in the first quarter of 2018. The company manufactured 2,020 Model 3 vehicles per week at the end of Q1, thus, lagging from the target of manufacturing 2,500 Model 3 units per week. This shortfall in unit production allowed the company to set an internal target of 6,000 units to realize the 5k target.
Per the company’s CEO, the recent temporary suspension of Model 3 production is planned to look after the bottlenecks that have led to the delayed production. This pause will help Tesla to reach 3000-4000 Model 3 productions per week in May. Further, a similar pause is expected at its two factories in California and Nevada to update the units in May as well.
Tesla, Inc. Price and Consensus
Tesla, Inc. Price and Consensus | Tesla, Inc. Quote
In order to meet the production target, Tesla will add another working shift for general assembling, body and paint at its hub in Fremont, CA. Additionally, it will add roughly 400 people per week to the existing employee count of around 10,000. The new recruits will be added at the battery outlet, situated in Reno, NV and the Fremont facility.
Price Performance
In the last three months, shares of Tesla have underperformed the industry it belongs to. During the period, its stock has lost 17.8% in comparison with the industry’s decline of 11.2%.
Zacks Rank & Key Picks
Tesla carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are BMW AG BAMXF, Honda Motor Co., Ltd. HMC and Bridgestone Corporation BRDCY, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BMW has expected long-term growth rate of 4.5%. Shares of the company have risen 27.2% in the past year.
Honda has expected long-term growth rate of 4.8%. Over a year, shares of the company have gained 24.1%.
Bridgestone has expected long-term growth rate of 9.1%. Over a year, shares of the company have gained 9.5%.
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