Not the first miss
The delivery miss didn’t sit well with Tesla’s doubters, who have criticized its consistent inability to keep up with demand. When the Model X stumbled out of the gate due to its complex design, the shortfalls became even more pronounced. Though the production of the Model X has improved since then, it has not been enough to silence critics.
Many on Wall Street are questioning the ability of the EV maker to meet its full-year delivery goal, but there are others who are undeterred by its latest results. In April, the electric car maker did admit that it was having some trouble delivering on its goals, attributing the trouble to its own “hubris.” However, loyal investors have not lost faith and continued to stand by the electric car maker.
Following its announcement, Tesla shares fell 3% in the first trading session. But such a fall is not enough to raise eyebrows, especially for the automaker’s fanatics. Tesla’s stock price is notoriously volatile, and over the past year, it has been swinging widely between $286.65 and $141.05.
Last year was a banner year for hedge funds in general, as the industry attracted $31 billion worth of net inflows, according to data from HFM. That total included a challenging fourth quarter, in which investors pulled more than $23 billion from hedge funds. HFM reported $12 billion in inflows for the first quarter following Read More
Tesla confident on meeting delivery target
Tesla is assuring investors that it will be able to deliver 80,000 electric cars for the full year thanks to an anticipated dramatic increase in production during the second half. The automaker is planning to build 2,200 vehicles a week in the third quarter and around 2,400 per week in the fourth quarter. According to the automaker, this will help it deliver more than 50,000 cars in the second half of the year, thus making up for the first quarter shortfall.
There are 5,150 vehicles headed to consumers worldwide, said the automaker. However, may on Wall Street are doubtful that the U.S.-based firm will be able to meet its goal.
Rod Lache, a Deutsche Bank analyst, said in a note, “This is not the first time Tesla has missed an aggressive target. Tesla has admitted to over-reaching on the complex design of the Model X, and they are paying the price.”
Whatever the case may be, investors will have to keep their fingers crossed until the fourth quarter. On Tuesday, Tesla shares closed down 1.16% at $213.98. Year to date, the stock is down more than 10%.