The second reservation is always given a later delivery estimate since Tesla apparently doesn't want to deliver two cars at the same time to early customers.
Four major houses - including Goldman Sachs and JP Morgan - cut their price targets by $5-$10 after the electric carmaker reported its worst ever quarterly loss and pushed back production targets for its Model 3 vehicle by three months.
Tesla shares dropped five percent after the announcement of the earnings news - while Tesla has yet to make a consistent profit, these losses were particularly large and unexpected.
Among investor worries: The Wall Street Journal reported on October 6, citing unnamed sources, that "as recently as early September major portions of the Model 3" were being built by hand.
Model 3 reservation holders were previously given rough 3-month windows for their delivery based on several factors, like date of the reservation, market where the vehicle will be delivered, the configuration of the car's powertrain, and whether or not the reservation holder is already a Tesla owner. The Reuters report was based on comments from Panasonic CEO Kazuhiro Tsuga, who said that bottleneck issues may be nearing an end.
"(1) What is happening to demand for the product?
Azerbaijan, Georgia, Turkey Launch 'Silk Road' Rail Link
President Erdogan and Azerbaijan's President Ilham Aliyev reviewed the guard of honor and saluted the Azerbaijani soldiers. The rail link between Azerbaijan and Georgia was modernized under the project, which was launched in 2007.
With a simpler, streamlined designed, the Model 3 was created to make the manufacturing process easier. Kallo also warned that Tesla Inc (TSLA)'s gross margin will decline sequentially again in the fourth quarter because of the Model 3 ramp, but that should be temporary. And they insist they know how to fix their problems, especially in the assembly of batteries that will power the cars. "We had to rewrite the software [for a battery assembly area] from scratch".
It now expects to build 5,000 Model 3s per week by the end of the first quarter of 2018 from its original target date of December. "The Model 3 is a ten-year program". It churned out just 260, Tesla said earlier this month. "I had hoped we would be at level 7 by now".
"It does seems [Tesla has] an endless amount of resources since they're such a Wall Street darling", she said. They noted that the move was a valuation call.
Baird analyst Ben Kallo is still a believer in the company, so he reiterated his Outperform rating and $411 price target for Tesla Inc (TSLA) stock following the results, and he's not the only one to hold steady. "And it would be serving the China market", he clarified, noting that the factory would probably only make Model S and as-yet-unannounced Model Y vehicles.
"We continue to make progress resolving early bottlenecks, [but] the nature of manufacturing challenges during a ramp such as this makes it hard to predict exactly how long it will take for all bottlenecks to be cleared or when new ones will appear". Reports said that between 400 and 700 employees in the 33,000-person company were laid off after performance reviews. Which, naturally, said journalists went and blogged about.