Tesla Loses No. 1 Spot in Market Value Among U.S. Automakers
Most critical to Tesla’s troubles was a new, slower timetable for the Model 3 introduction,
and a separate acknowledgment of problems manufacturing battery packs, a critical component of its cars, in the second quarter, said David Whiston, an analyst at Morningstar.
Concern over Model 3 production was compounded when the company said its giant battery plant in Nevada had struggled to produce enough battery packs.
In the second quarter, Tesla produced more cars than it delivered to customers, causing some analysts to question whether demand for current models — the Model S sedan
and the Model X, a sport-utility vehicle — is reaching a plateau.
Last year, Mr. Musk predicted that Tesla would sell about 100,000 Model 3s this year.
Ramping up Model 3 production “remains a huge challenge,” he said.
With the Model 3 in the lineup, Tesla expects to sell about 500,000 cars a year by 2018.
