Tesla shares fall despite hitting its Q3 production targets

Tesla shares are lower Wednesday, despite hitting its Q3 production targets and as the car maker is facing a court case over deportation threats against foreign workers.

Tesla shares fall despite hitting its Q3 production targets

Tesla shares are lower Wednesday, just a day after the electric car maker said its third quarter production numbers confirmed it had made the highest number of vehicles on record. Meanwhile, Elon Musk’s business is also set to fight a court case alleging the firm threatened to deport foreign workers.

By 1640 BST, Tesla shares were 2.45% lower at $293.75. The stock has been mixed in recent weeks during an SEC investigation.

Tesla production numbers

Tesla said that it made 80,142 vehicles in the third quarter of 2018, a new record high for the electric car manufacturer and beating its previous record achieved in the second quarter.

The details show that 53,239 Model 3s were built, it was also able to make 5,300 dual motor Model 3’s in the final week of the quarter. Deliveries in the period were:

  • Total 83,500 vehicles.
  • Model 3 55,840.
  • Model S 14,470.
  • Model X 13,190.

“With production stabilized, delivery and outbound vehicle logistics were our main challenges during Q3,” Tesla said. “We made many improvements to these processes throughout the quarter, and plan to make further improvements in Q4 so that we can scale successfully.”

“We want to thank the entire Tesla team for executing so well during this challenging ramp up in deliveries. We also want to thank all of our customers who volunteered to help us with deliveries, and our new customers who are showing their faith in Tesla by purchasing our products in such large numbers,” Tesla added.

Tesla lawsuit

Separately, a US Federal Judge has ruled that Tesla must defend two cases against of threatening to deport employees.

The plaintiffs argue that foreign workers at its Fremont, California plant were made to work long shifts that contravened US labour laws. Those same workers were told that if they became ill or reported any injuries, they could face pay reductions or deportation.

The case was originally filed in 2016 and Tesla said it has already investigated this problem and no longer works with the subcontractor who was involved.

Top Equities Brokers

0 Brokers added for comparison:
Clear all