Tesla, Inc. shares fell sharply in Monday’s post-market session, settling near $334 after the company warned that it had manufactured just 260 highly anticipated Model 3 electronic automobiles despite CEO Elon Musk’s bold July claim that 1,500 autos would be ready for sale by Oct. 1. The flamboyant leader warned about “production hell” at that time, and as it turns out, that prediction hit the bull’s eye.
The stakes are high because the Model 3 will target a broad consumer base, offering an attractive alternative to the higher-priced Models S and Model X. Competition in this space is heating up at a rapid pace, with rival manufacturers laying out plans for competing vehicles, as evidenced by news that General Motors Company intends to produce two electric automobiles in the next 18 months. (See also: Automakers Will Get a Jolt From Electric Car Sales.)
Tesla stock sold off overnight after it failed to meet aggressive Model 3 goals and could now test support between $325 and $330. …read more
Read more here: Tesla Stock Nears Critical Support After Production Miss
Category: TSLA, GM