Tesla is sliding after halting Model 3 production (TSLA)


Elon Musk

Tesla has temporarily suspended its Model 3 assembly line while seeking to “improve automation and systematically address bottlenecks.”
Shares were down 0.89% ahead of Tuesday’s opening bell.
Model 3 production worries are only part of Tesla’s problems right now.
Watch Tesla trade in real time.

Tesla was trading lower by 0.89% at $288.61 ahead of the Tuesday’s opening bell after the electric-car maker said it had temporarily suspended its Model 3 assembly line to “improve automation and systematically address bottlenecks.”

The shutdown, first reported by BuzzFeed, is the latest in a series of setbacks for the company.

Earlier in April, Tesla announced disappointing Model 3 production numbers but pledged to reach its target for 5,000 cars a week by the end of the second quarter. CEO Elon Musk recently told “CBS This Morning” that excessive automation of the Model 3 “was a mistake.” He later tweeted that his company would be profitable before the end of the year.

But Model 3 production problems aren’t the only issues Tesla has to deal with right now.

There’s an ongoing government investigation into a fatal Model X crash in California, and the company’s bonds have come under pressure. Additionally, a report from the Center for Investigative Reporting out Monday said Tesla deliberately concealed serious injuries from public reports to boost its safety statistics.

Shares of Tesla are down 6.47% this year, and recent selling has pushed them below the key $300 level.

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Source:: Business Insider

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