Elon Musk Reports Tesla Fourth Quarter Model 3 Production Is Definitely, Like, Way More Than None

If you work at Morgan Stanley, find Adam Jonas and hug him tight.
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Tesla Using Debt Financing To Fund “Manufacturing Hell” And No One Really Cares

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">Remember this summer when Elon Musk broke the metaphorical glass and turned to debt financing in order to financing the "Manufacturing Hell" strategy that he claimed would get Tesla to production of 5,000 Model 3s a week by the end of Q4 2017?

Welllll....

In Q4, Tesla delivered 29,870 vehicles, of which 15,200 were Model S, 13,120 were Model X, and 1,550 were Model 3. This was once again our all-time best quarter for combined Model S and X deliveries, representing a 27% increase over Q4 2016, and a 9% increase over Q3 2017, our previous best quarter.

Woof. David Einhorn is feeling bloodflow and Adam Jonas needs a hug.

But before you jump all over Elon for being distracted by Space, tunnels, hat sales and getting his hear broken by pretty actresses, allow him to remind you that he achieved these shitty numbers with a last-minute push!

During Q4, we made major progress addressing Model 3 production bottlenecks, with our production rate increasing significantly towards the end of the quarter. In the last seven working days of the quarter, we made 793 Model 3's, and in the last few days, we hit a production rate on each of our manufacturing lines that extrapolates to over 1,000 Model 3's per week. As a result of the significant growth in our production rate, we made as many Model 3's since December 9th as we did in the more than four months of Model 3 production up to that point. This is why we were not able to deliver many of these cars during the holiday season, just before the quarter ended. Model 3 deliveries to non-employee customers are now accelerating rapidly, and we're confident our customers will love them.

Tesla is pretty much admitting that the final quarter of 2017 was an unmitigated failure and therefore indicating that it might never be able to do the one thing that it needs to do to be viable as a major force in automobile production. Almost every indicator right now is screaming that Tesla is facing an existential crisis that could ultimately kill it.

Those things would all be super bad if Tesla was merely a public company. But luckily Tesla is a religion. Please enjoy watching Tesla stock break out in early morning trading.

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