Tesla Inc announced record quarterly car production numbers on Tuesday but warned it was facing major problems with selling cars in China due to new tariffs that will force it to accelerate investment in its factory in Shanghai.
The California-based electric carmaker, emerging from several months of turmoil around its Chief Executive Elon Musk, confirmed numbers leaked to an industry news site on Monday that showed it produced roughly 80,000 cars in the third quarter.
Deliveries reached a record 83,500, above Wall Street estimates of 80,000 and including almost 56,000 of the Model 3 sedan whose ramp-up is widely seen as crucial to the company’s drive to become profitable.
That overshadowed concerns expressed by the company over a 40 percent tariff being charged by China for the import of its cars, which it said was blocking sales in the world’s biggest electric car market. Shares gained 0.5 percent at the open.
“Yes it sounds like the tariff comments could haircut some of their profit plans but the production ramp is very impressive and it should continue to move higher,” analyst Chaim Siegel of Elazar Advisors said.
“The company’s at an inflection point for units and profit.”
Tesla did say that it had missed its weekly Model 3 production target on Tuesday and outlined a series of barriers it faced due to the worsening of President Donald Trump’s trade war with China.
The electric car maker said it was speeding up construction of its Shanghai factory as it seeks to combat a huge competitive disadvantage against other producers and even other imported cars, which it said are carrying a lower 15 percent tariff.
“Tesla is now operating at a 55 percent to 60 percent cost disadvantage compared to the exact same car locally produced in China,” the company said.
Musk in July landed a deal with Chinese authorities to build a new auto plant in Shanghai, its first factory outside the United States, that would double the size of the electric car maker’s global manufacturing.
The company flagged the tariff issue in August but said only that it was likely to have “some” impact on Chinese volumes and would not heavily affect global vehicle deliveries.
“With production stabilized, delivery and outbound vehicle logistics were our main challenges during Q3,” the company said on Tuesday. “We made many improvements to these processes throughout the quarter, and plan to make further improvements in Q4 so that we can scale successfully.”
Tesla produced over 5,300 Model 3 cars in the last week of September, falling short of its target of 6,000.
Overall in the third quarter the company produced 53,239 of the cars in the third quarter, in line with its target of 50,000 to 55,000 Model 3s, and delivered 55,840 of the vehicles to customers.
Tesla first met a long-held target of 5,000 vehicles per week at the end of June after a series of production bottlenecks and delays. Since then the company has been striving to sustain and increase that level.
Time Magazine Names Jamal Khashoggi, Other Journalists As “Person Of The Year”
This year’s time magazine “Person Of The Year” has been bestowed on a group of journalists that includes murdered Saudi writer, Jamal Khashoggi and two Reuters reporters imprisoned by Myanmar’s government. The magazine says it named the group of journalists as “person of the year” because the idea of truth as critical to democracy is under assault.
Also honored is the founder of a Philippines news website that has been vocal in criticizing that country’s authoritarian government. A Maryland, USA, newspaper is also among the honored.
This is the first time in its ninety-five year history that time magazine has honored people in its own profession.
The annual distinction is intended to recognize the person, group or idea that had the greatest influence on world events that year. It has been given to a wide range of influencers, from u.s. Civil rights activist Martin Luther King Jr. And Queen Elizabeth to Adolf Hitler, the leader of Nazi Germany, who was honored before the start of world war two.
Syrian Government Using Anti-terrorism Law To Seize Properties From Dissidents
Rights groups and some of the affected Syrian people say the government has been using a little-known anti-terrorism law to seize property from dissidents and their families as it takes back control of areas that were held by rebel groups.
Now that Syria’s conflict has stabilized, and president Bashar al-Assad again controls the biggest cities, it is left to be seen how he will handle the areas where the 2011 uprising against him flared.
International attention has focused on policies, such as legislation known as law 10, that could eventually enable the government to dispossess people in the opposition strongholds worst damaged in the war.
But human rights groups say, while law 10 has not yet been put into effect, the separate anti-terrorism law has already been used to seize property, including from people who had no hand in violence.
Theresa May Faces Confidence Vote
British prime minister, Theresa May faces a confidence vote in her leadership by MPs in her own conservative party, after chaos began to roil her European union exit deal.
So much now plagues the deal that has opened up the prospect of a messy no-deal Brexit or a referendum that could reverse Brexit. Britain is due to exit on March the twenty-ninth next year.
Graham Brady, the chairman of the party’s so-called 1922 committee, said the threshold of 15 percent of the parliamentary conservative party seeking a confidence vote had been reached. A vote will be taken at the house of Commons later this evening.
May could lose her position as prime minister if a hundred fifty-eight of her three hundred fifteen MPs vote against her, but a mutiny could also help sustain her through the crisis.
- 19 Year Old Defeats Oshonaike At National Sports Festival December 12, 2018
- Time Magazine Names Jamal Khashoggi, Other Journalists As “Person Of The Year” December 12, 2018
- Syrian Government Using Anti-terrorism Law To Seize Properties From Dissidents December 12, 2018
- Theresa May Faces Confidence Vote December 12, 2018
- Huawei CFO, Meng Wanzhou Released On Bail December 12, 2018
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