Tesla, Inc. TSLA approaches the quarter-end when it typically goes for an all-out push, but this time around the electric vehicle giant may be stymied by a pause in production at its Giga Texas factory.
What Happened: Tesla’s Model Y and Cybertruck production at its Giga Texas factory is likely to be paused until the end of September, said drone videographer and Tesla influencer Joe Tegtmeyer in a post on X, formerly Twitter, on Wednesday.
He, however, said in his latest video that more cars of employees were found in the parking lot. “So testing, training, and calibration work may be underway with all the new equipment, processes & changes going on inside,” he said.
Tegtmeyer also shared a video on his YouTube channel which talks about the delivery of new manufacturing equipment including two robotic production units for Cybertruck.
See Also: Everything You Need To Know About Tesla Stock
Analyst’s Take: The Giga Texas plant upgrades were communicated by CEO Elon Musk and the then CFO Zachary Kirkhorn on the second-quarter earnings call, said Future Fund’s Gary Black.
The Tesla CEO said in July, “We continue to target 1.8 million vehicle deliveries this year, although we expect that Q3 production will be a little bit down because we’ve got some shutdowns to for — a lot of factory upgrades.”
“So, just probably a slight decrease in production in Q3 for sort of global factory upgrades,” he added.
Black said the September production pause shouldn't be a surprise to Tesla investors. The fund manager expects third-quarter deliveries to be below the 466,000 units delivered in the second quarter and the 462,000 units the Street is estimating.
Explaining the variance, Black said most Tesla analysts have not updated their third-quarter forecasts since China ran out of Model 3 inventory to sell a few weeks ago, and production paused at the Giga Texas for plant upgrades since Sept. 6.
Tesla closed Wednesday’s session down 1.47% at $262.59, according to Benzinga Pro data.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
