Economy

Tesla shares rise as Musk says Model 3 set to hit target

Tesla shares rise as Musk says Model 3 set to hit target

Elon Musk was re-elected as Chairman of Tesla in the annual shareholders meeting held in California.

"We are also concerned about whether these highly paid directors can help the CEO focus on solving the serious financial, production, and labor relations problems now facing Tesla", he added. Tesla was not planning to raise any "incremental debt or equity" financing, he stated.

Just days after failing to receive a Recommended score in Consumer Reports, the Tesla Model 3 received the Recommended label after improving its braking performance via an over-the-air software update.

Responding to a question about compact [Golf size] and sub-compact [Fiesta size] cars, Musk told the Tesla shareholders' conference: "I think we'll do a compact vehicle in less than five years".

"I think Model Y is going to be a manufacturing revolution".

His 30-million strong Twitter following gave rave reviews. Additionally, we can see that the crossover will have a more upright and pronounced front fascia than current Tesla models.

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Apart from assuring investors that the Model 3 line is steadily approaching its production goal, Musk also discussed what could very well be the dark horse of Tesla's ecosystem - its energy business. "One of the biggest mistakes we made was trying to automate things that are super easy for a human to do, and super hard for a robot". "I do think I have an issue with time", Musk replied. Which is pretty good for a auto that nobody has managed to get their hands on yet. I'm a naturally optimistic person.

Another asked if Musk would still honor the $35,000 price advertised for the Model 3.

"While we do not model GAAP profitability for conservatism, we believe TSLA will be able to achieve sustainable operating cash flow and operating profit in the intermediate-term, which would be a significant catalyst, in our opinion", writes analyst Ben Kallo.

Additionally, we know that the Model Y will use the same platform as the Model 3 and could feature falcon wing rear doors like the Model X. In the first quarter of 2013, about 5,000 Tesla cars were delivered to buyers.

"We are incredibly excited to build the first Gigafactory outside the USA in China, specifically it is going to be in Shanghai", Ren said. He did not mention if the $35,000 figure included a $7,500 United States tax credit to buyers of electric vehicles.

Tesla had struggled to meet the impressive demand for its vehicle, with a reported 500,000 pre-orders put in so far.