Elon Musk’s time is up – but how do people think he’s done?
On Saturday, Elon Musk’s time ran out. Mr. Musk had pledged to have Tesla producing 5,000 Model 3s per week by the end of June. Now, the world waits to see if he has delivered on his promise. It’s certainly been an interesting ride getting here – over the last quarter, the company’s factory was shut down twice, a massive tent appeared in the company’s parking lot containing a new production line, Musk had to contend with a “saboteur” and started sleeping under his desk and working on the assembly line himself.
An exciting month has seen Tesla’s share price surge by more than 20%
SOURCE: Yahoo Finance
Guesses as to how well Musk has done vary – but almost no one believes he has met his target. Bloomberg has ben running a tracker since February that estimates Model 3 production. It has Tesla churning out as many as 4,533 per week. Goldman Sachs thinks he’s closer to 4,600. Musk says they’re all wrong, telling employees in an email that his detractors were “in for a rude awakening” when the numbers are finally revealed.
The blighted Model 3 production has been a thorn in Elon’s side for the last six months. Originally, Tesla had planned to be pumping that number of vehicles out by the end of 2017. Since then, it’s been pushed back twice, and Musk has had to take personal control of the production line.
With analysts remaining skeptical over Mr. Musk’s success in turning around Tesla’s production problem, what kind of effect will the final figures have on the company’s share price? Soon, we’ll find out.
Dominion holds Tesla in its Global Trends Luxury Fund.
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