News had come out of New York claiming that Tesla is going produce 500,000 vehicles as early as 2018 when it was considered to be 2020 before this figure would be hit. Analysts at Barclays, however, are being critical of the suggestions and do not believe that it will happen. They accept that there is a great desire on the part of Tesla to be the best in class car provider, there have been a number of manufacturing problems pinpointed, and this is for the S as well as the X. Volume is expected to go up, there is likely to be a raft of problems, including delays to the release dates and inefficiencies once the cars are actually for sale.
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The company that is based in Palo Alto, California could find that they do not have sufficient cash to make the vehicles, and there are already challenges being made when it comes to the margins with the Model 3. It is accepted that Tesla is going to be expanding over the next decade, but it will be at the expense of suppressed margins as well as challenging cash flow say, analysts.
Portfolio Manager at Action Alerts Plus – a charitable trust – is also unsure about the figures for 2018 believing that 200,000 is a more sensible figure to aim for. The Street Ratings show Tesla to be D+, and this is due to high risk, poor return on equity and a poor growth when it comes to shares.
