Tesla (NASDAQ:TSLA) shares were pointing to a positive opening on Monday after Elon Musk tweeted over the weekend that a dual motor, all-wheel drive performance Model 3 will be coming, and after U.S. Treasury Secretary Steve Mnuchin said on Sunday that "We're putting the trade war on hold", referring to trade talks with China. This dual motor option will add $5,000 to the $44,000 base price of cars with the long range battery pack, which are the only ones offered today.
The performance version will have that range and the ability to accelerate from 0-60 miles per hour in 3.5 seconds on the way to a 155 miles per hour top speed.
"With production, 1st you need achieve target rate & then smooth out flow to achieve target cost".
"What we don't know yet, even though these specs are out there, is when those cars will actually be arriving", said Marty Padgett, editorial director at Motor Authority.
The company is planning a six-day stoppage of its Model 3 assembly line later this month, Reuters reported, in order to fix manufacturing issues and hit Musk's goal of 5,000 vehicles per week coming off the line. Musk boasted the $78,000 vehicle will "beat anything in its class on the track", reaching 60mph in 3.5 seconds with a top speed of 155mph. Tesla delivered 8,180 of the sedans in the first quarter, making it the best-selling electric auto in America, and nearly a half-million people have put down $1,000 deposits for Model 3s.
In a Twitter conversation, Musk explained that Model 3 production rates are the key to getting its most affordable variant out the door.
"Tesla dual motor means there is a motor in front & a motor in rear". The standard Model 3 is priced at $35,000 (circa £26,700). Musk says it'll cost $78,000 (with all options sans Autopilot), comparing it to a BMW M3, only faster and with better handling. Takes 0-60mph to 4.5 sec & top speed to 140 miles per hour.
"From production bottlenecks to quality issues, consensus has largely dismissed the prospect of 25% gross margin on the Model 3", Haissl told clients. As the weekly production rate increases rapidly, which appears the be the case right now, Tesla is going to need new orders in the USA until they expand to other markets.
Tesla has recently faced production problems, which have caused a sell-off in its stock.