Tesla's 21% Q1 Sales Miss Means Estimates Will Be Coming Down

Tesla stock drops after Elon Musk jokes about bankruptcy and investors expect more bad news

Tesla stock drops after Elon Musk jokes about bankruptcy and investors expect more bad news

Production bottlenecks have plagued the company, with much of its future banked on the Model 3, its first mid-price, mass-market vehicle. This will make it more expensive for the company to raise the money it needs to finance itself. The solar roof still has a long way to go to become the transformational product that Musk expects it to be. Though it's worth mentioning that it only produced 2,020 Model 3 vehicles last week.

According to the Recommendation Trends of the stock polled by Zacks Investment Research for this month, the company has a consensus recommendation of 2.76 out of the scale from 1 to 5 where 1 stands for Strong Buy and 5 means Strong Sell.

"In the next seven days, we expect to produce 2,000 Model S and X vehicles and 2,000 Model 3 vehicles", Tesla says now.

Tesla has more immediate concerns, though.

For now, though, Tesla's solar energy business is taking a back seat to the Model 3.

That means that profitable Model S and X sales were sacrificed in favor of unprofitable Model 3 sales. In the past seven days, Tesla produced 2,020 Model 3 sedans.

Tesla said it is sticking to its forecast that it would be making 5,000 cars a week "in about three months". Share prices rose approximately 7 percent Tuesday before the opening bell.

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The increased production comes after a succession of bad news for the company this year, which started with low production numbers in the fourth quarter when the company made only 2,425 Model 3s.

Tesla released its data against a troubling backdrop of bad news. Moody's warned that the company might need to raise another $2bn (£1.4bn) to remain solvent, and that its rating was likely to be downgraded further if it failed to meet its production targets. Tesla also announced on Thursday the voluntary recall of 132,000 of its Model S luxury sedans because of an issue with a power steering component.

Tesla Chief Executive Elon Musk stands on the podium as he attends a forum on startups in Hong Kong, China January 26, 2016. Right now, tho, better to divide & conquer, so I'm back to sleeping at factory.

While Tesla won over stock investors with its outsize ambitions to compete against the traditional Big 3 auto makers, it could fall short of that goal and still satisfy creditors, who are mostly concerned with its ability to service debt payments.

Production numbers are finally officially in: The first quarter of the year saw Tesla (NASDAQ:TSLA) produce 34,494 vehicles overall, up 40% from the previous quarter.

"Even if they're able to cobble together a couple of good weeks, that doesn't mean that the sustainable run rate will continue", Rusch said. Among other things, JPMorgan is anxious about the effect further Tesla stock losses will have on the company's ability to refinance the nearly $1 billion of debt coming due in 2019.

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