Will Tesla Complete Production Of Its Gigafactory In Time For The Model 3 Launch?
Tesla Motors Inc (NASDAQ: TSLA)'s stock price and the future of the company rely on a smooth launch of its mass produced Model 3 sedan. The only problem is the Model 3 sedan needs the company's battery-manufacturing plant, known as the Gigafactory, to be fully operational.
According to the Wall Street Journal, Tesla has only spent less than one-fifth of a budged $2 billion on the Gigafactory through March 31. As such, the facility's readiness for mass production of batteries to be used in future cars is unknown.
Tesla's investors have been greeted with production delays and setbacks for some time. The question many investors are now asking is if the company will get the same pass this time around.
As noted by the Wall Street Journal, the competition among the electric vehicle space is heating up quickly which puts the pressure on Tesla. Volkswagen and General Motors Company (NYSE: GM) are expected to launch and begin selling a rival electric car before the official launch of the Model 3.
Meanwhile, sales of Tesla's Model 3 sedan aren't set in stone — buyers who placed a $1,000 deposit can receive a full refund if a competing car proves to be more desirable or affordable.
Bottom line, consumers will be faced with alternatives to the Model 3 and that can't bode well for Tesla's stock and future business.
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