Tuesday, 3 April 2018

Shares in electric car firm Tesla higher after Model 3 production boost

Shares in electric car firm Tesla have risen after it announced a boost in production of its cheaper Model 3 cars in the first quarter.

The firm said it had "by far the most productive quarter in Tesla history" after it built 34,494 vehicles, 9,766 of which were Model 3s.

Tesla's profitability is reliant on increasing its Model 3 production.

The company's shares have fallen in the past week amid speculation over its finances and a fatal US car crash.

The firm said in a statement it had doubled its weekly Model 3 production rate in the third quarter. In the last week, it said, it had produced 2,020 of the vehicles.
"Tesla continues to target a production rate of approximately 5,000 units per week in about three months, laying the groundwork for Q3 [the third quarter] to have the long-sought ideal combination of high volume, good gross margin and strong positive operating cash flow.

"As a result, Tesla does not require an equity or debt raise this year, apart from standard credit lines," it said.

BBC      News.

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