Tesla shares rise on Musk’s deal with regulators and Model 3 numbers


One tweeted to Musk last month: "There are 42 Tesla's sitting at the Union Pacific Railroad in SLC".

"We continue to forecast Tesla's economics now starting to flip from cash-burn to cash generation off the big vertically-integrated fixed-cost structure it has been building; as its execution hurdles progressed from battery module production 2-3 quarters ago, then to automated general assembly, to now simply the logistics of shipping/ hauling Model 3 deliveries fast enough", the analyst continued. But Tesla has failed to meet another goal it set for itself: It had wanted to produce 5,000 Model 3 vehicles per week on a consistent basis.

Tesla was lately up 17 percent at $309.71, more than recouping losses that came as shares last Friday ended 14 percent lower. It indicates that the company still hasn't approached, at any sustained level over a longer time, chief executive Elon Musk's goal of producing 5,000 of the cars per week.

Lawyers said that the settlement and size of the fine might give more ammunition to short-sellers pursuing separate cases against Musk for manipulating the company's shares through the August 7 tweet, as well as to an investigation by the US Justice Department. "If Musk can step away from the external stuff that doesn't matter, he'll make the game that much easier for himself, and that will be good for everyone, just like this settlement". Musk has told upset customers that "we've gone from production hell to delivery logistics hell", and the CEO has incomprehensibly suggested the solution is for Tesla to build its own vehicle carriers, despite no evidence of any shortage of auto haulage capacity.

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That slightly exceeded the number of Model 3s Tesla said it produced in the third quarter: 53,239. Musk has pledged that Tesla would record profits and positive free cash flow in the third and fourth quarters this year.

And in a September 30 email to employees that was filed with the SEC on Monday, Musk said the company was "very close to achieving profitability and proving the naysayers wrong". Investors saw the initial settlement agreement as a decent and quick solution to the charges, sending shares soaring almost 17% in Monday's trading session.

Gordon said patience is wearing thin for people who have already put down $1,000 to get on a waiting list for the Model 3.