Tesla Cant Keep Pace After Losses

Tesla needs to meet delivery targets and pace up to sustain

Tesla needs to meet delivery targets and pace up to sustain

Tesla Motors Inc. has been dealing with a lot of criticism where many analysts are ridiculing the company for terming the EVs top acceleration as the prime that makes the company “ludicrous” -Nothing more than that. As per the various observers, the delivery target of the company for the entire year was ranging between 50,000 and 55,000 cars but now that does not really seem to happen.

When the preliminary figures were revealed for the third trimestral, it showed the entire results. The electric car giant had delivered 33,157 vehicles in the fiscal year of 2015. The company at this point has to cover an additional 16,843 to 21,843 which seems merely impossible considering the problems they are dealing with regarding the Model X sport utility car.

However, the car deliveries for the company are not really a long term issue which si quite ironic. What really matters to them that they will eventually generate money and hopefully in a massive quantity so that they can comply to their market which is one and a half times more than Fiat Chrysler Automobiles NV that have only s1% unit sales as per consensus.

During the third quarter in the FY15 is expected to repeat a similar pattern in the reporting period where they have gone back as far as the previous year. The expectations were so low that analysts cannot really estimate if they will be able to clear or not. Every trimestral was considered to be money making a year back but so afr they have not managed to get the same distinction. According to Wall Street Journal, “Analysts think Tesla will report a loss of 79 cents a share for the period, under generally accepted accounting principles, compared with a loss of 52 cents in the same period a year earlier.”

So now the investors have come to a point where they are actually tired of keeping an optimistic approach. Analysts and investors now wish to keep the technical accomplishments made by Tesla aside and actually see the harsh economic reality.

The Consumer Reports did a negative assessment of reliability recently where the target price of Tesla stock was lowered. So now it is high time that the company changes its course and actually thinks about what it can do to redeem itself once again and give appositive ray of hope to investors and analysts that are keeping a watch on the company.


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