Tesla Shares Recover from Report on Weak Model 3 Production

Tesla's Model 3 production who announced a target of 5,000 sedans at the end of the second quarter this year is expected to be delayed further. However, shares of the company were trading higher during the most recent trading session after the company announced that it recorded its most productive quarter in the whole history of the company.

Model 3 Update

Shares of Tesla recovered on Tuesday after the American electric car manufacturer announced a boost in the Model 3 vehicle production for the first quarter of the year. According to Tesla, it has been able to build more than 34,000 vehicles for the first quarter with almost 10,000 of the said numbers being the mass-market Model 3 sedan.

Despite Tesla’s massive share price rally during the second half of 2017, the shares have lost more than 18% since the beginning of the year due to consecutive reports of a missed production targets on the mass-market Model 3 vehicle.

According to the company, the production of the Model 3 has also gone up by twice as much its weekly rate back in the third quarter with the company being able to produce 2,020 Model 3s for the first quarter. 

Tesla shares initially slipped following the release of this information as it had a target of producing 2,500 Model 3 sedans for the first quarter of the year. This was revealed in the release of a report from an internal message from Tesla CEO Elon Musk confirming its production numbers for the quarter.

While the market reaction of the market on the Model 3 production numbers appeared to be mostly negative, shares of the company recovered to $260 after losing around 8% last week on the announcement of the U.S. National Transportation Safety Board of a second investigation to be held on a car crash involving a Tesla Model X SUV.

Tesla Shares

Shares of Tesla which is currently trading at around $267.53 is up by almost 6% from the previous trading session where it traded 3.94% lower on the initial release of the reports in regards to the statement from CEO Elon Musk regarding their Model 3 production numbers. 

The stock which was down by around 18% since the beginning of the year has been pressured by the continuous investor disappointment on the company’s Model 3 production and delivery reports that missed its own targets. Over the past week, Tesla shares were also pressured by the ongoing investigations on the car crash involving a Model X.

See Also: Tesla Chief Accounting Officer Leaves Company

FSMSmart gives you the latest news updates, market trends, and news about forex, commodities, stocks and many more! Open an account now and learn more about other investment opportunities on FSM Smart.