Media hype around Tuesday’s maiden flight for Falcon Heavy Rocket launch may be stratospheric but ahead of Tesla’s financial results on Wednesday investors remain focused on Tesla Model 3 deliveries.
The first test flight has been announced with a fair number of caveats from both Elon Musk, CEO of Space Exploration Technologies and Chad Anderson CEO of Space Angels both of whom were redefining what constitutes a successful flight.
Musk in a conference call with reporters said he would consider a win as clearing the pad while Anderson said in a Bloomberg interview that success at this point is “getting off the pad…even if it crashes, even if it blows up it will get a lot of important data.”
Falcon Heavy Rocket then will be a success even if a failure. Wednesday brings us to more earthly pursuits as Tesla will announce its financial results. Tesla was down -1.69% in pre-market trading on Tuesday.
The primary focus is on Tesla’s deliveries, the company’s main revenue generator and the company has confirmed record deliveries of 29,870 vehicles.
Model 3 hampered by delays
Wall St analysts consensus for revenue is $3.299bn for fourth quarter 2017 and earnings per share are expected to show greater losses of around $3.19 per share.
A central issue is Model 3 production which has been hampered by delays. The company sought production of around 5,000 Model 3 vehicles a week but has failed to achieve that.
In January, Tesla said it reached 1,000 units per week at the end of December and expects that figure to increase to 2,500 units by the end of March.
Model 3 delays may be eroding Tesla’s competitive advantages as Forbes contributor, David Trainer, points out, “The number of competing electronic vehicles coming out makes you wonder how many people will want to keep waiting a year or more to be able to buy the Model 3.
"If Tesla can’t fix its production issues soon, it may see its customers abandoning it for cheaper and more accessible options.”
Wednesday’s earnings report will tell whether Tesla stock will continue to take flight or bring it to earth with a bump.