Tesla (NASDAQ:TSLA) is down 2.61% premarket after pushing back a closely-watched production target of hitting a 5K Model 3s per week pace to the end of the second quarter.
Morgan Stanley analyst Adam Jonas sees the delay setting up a very strong Q2 for the EV automaker in terms of production, while Nomura Instinet reminds that prioritizing quality control makes sense. RBC Capital says the shortfall leaves the company "hovering" with $1B in cash, but not to the point that it needs a capital raise quite yet.
There were some signs of progress on Model 3 production in Q4. "In the last seven working days of the quarter, we made 793 Model 3s, and in the last few days, we hit a production rate on each of our manufacturing lines that extrapolates to over 1,000 Model 3s per week," updated Tesla.
Previously: Tesla Q4 Model 3 deliveries well shy of estimates; shares down 1.2% (Jan. 3)
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