The company reported this week it had delivered 22,000 vehicles in the second quarter and 47,100 in the first half. Musk is relying on appetite for those vehicles remaining strong as the Palo Alto, Calif. -based company spends heavily to bring out the Model 3. The Model 3 will only be available in rear-wheel-drive initially. This hasn't been an issue for the stock before, so why would it be now? Otherwise, the company might be soaring a little more this week. Tesla said a "severe shortfall" of new battery packs had constrained vehicle manufacturing, and said second-half deliveries of the Model S sedan and Model X sports utility vehicle should exceed those of the first half. That was aided by 10,000 Model X deliveries, with the rest for the Model S.
Tesla has been at the center stage when one of its female employees AJ Vandermeyden spoke up about the harassment issues she is facing at the company.
The Model 3, the company's most affordable vehicle yet, had been expected to begin production in July, but there had been little news on how the preparations at Tesla's factory in Fremont, Calif., were progressing.
Demand for Tesla's Model S sedan and its Model X SUV appears to have peaked, Goldman Sachs analysts said as they downgraded their outlook for the company.
According to the report, the seat belt in Tesla's Model S was not effective during the test and could lead to the driver's head striking the steering wheel hard through the airbag.
A new forecast for electric cars shows explosive growth in new sales particularly in China. Credit Bloomberg NEF
There are plenty of people on Wall Street who are skeptical of Tesla's ability to hit 500,000 cars per year by 2020.
Tesla's shares are shaping up to possibly have their worst week of the year so far as lower-than-predictable production, raised competition and a review from an industry group weigh on the electric carmaker.
J.D. Power, the arbitrator of initial quality, published its annual study last month but didn't include any Tesla vehicles because of a small sample size. And, it will also give the prospective owners a bit more time to save up some more so they won't have to be limited to the Model 3 in its most basic form.
The Model 3 is scheduled to go on sale on July 7. Mr Sacconaghi said. "Is the company anxious about any specific macroeconomic headwinds?" Everything is done via word of mouth.
The production of the electric auto aimed at the broader market - with a price of $35,000 - is expected to ramp up quickly, Musk said, with 100 in August and 1,500 or more in September.