Tesla CEO Musk gets reprieve in contempt-of-court hearing

Jeannie Matthews
April 5, 2019

"Tesla's 1Q19 vehicle production & deliveries report was substantially worse than expected", said Ryan Brinkman, a J.P. Morgan analyst who had been waiting for the automaker's announcement following the end of its first quarter in 2019.

Tesla Inc deliveries fell 31 percent in its first quarter as the electric auto maker struggled with its first shipments of the Model 3 sedan to Europe and China due to longer transit times.

The manufacturer reported 63,000 deliveries from January to March, down nearly a third compared to the 90,966 it delivered in the fourth quarter of 2018.

The company encountered problems shipping the Model 3 to China in March after customs authorities suspended clearance because of misprinted labels on certain cars.

Meanwhile, Tesla's shares fell 8% Thursday after the company said it churned out 77,100 vehicles in the first quarter, well behind the pace it must sustain to fulfill Musk's pledge to manufacture 500,000 cars annually.

Tesla traded as low as US$267 in pre-market trading and was down 6.9 per cent at US$271.80 at 4:44 a.m.in NY.

At least four Wall Street brokerages cut their price targets on the company's stock, citing concerns about profitability and revenue after deliveries of the higher-priced luxury cars more than halved compared to the fourth quarter.

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It seems that she has someone to blame for the breakdown, asking her audience if she could get a refund on the much hyped electric vehicle. The name of his "label" is a play on emoji, a callback to a joke from earlier in the weekend, according to Rolling Stone. At the end of the first quarter, approximately 10,600 vehicles were in transit to customers globally.

Nord LB analyst Frank Schwope called the numbers "more shocking than disappointing" and said there remain doubts whether Tesla could deliver 400,000 cars this year.

"To us, this signals that the tax subsidy cut in the USA was a significant hit to these premium vehicles and/or Model 3 is having a bigger cannibalization impact", he said in a note.

He tweeted about the track between tweets about the Tesla Semi.

The company built its reputation on luxury cars, but has faced several production challenges with its Model 3 sedan, which it hopes will reach a mass audience.

The CEO added, "Even so, we ended the quarter with sufficient cash on hand".

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