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<pre><pre>Elon Musk says that Tesla has a & # 39; good chance & # 39; has on record deliveries

Tesla CEO Elon Musk told employees in an email from Wednesday evening that the company has a "good chance" to beat this record for deliveries this quarter. That record was set in the last quarter of 2018, when Tesla delivered a little more than 90,000 cars, of which 63,000 were Model 3 & # 39; s. Tesla predicted earlier in April that it would deliver around that number of cars this quarter, but Wall Street's expectations were soured recently.

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Breaking the record, or even coming close, would mean a huge revival for Tesla, who saw it total deliveries fall to just 63,000 in the first quarter of 2019 when the model 3 started selling in Europe and China. That decline meant that the company from generating its first ever back-to-back profit in the second half of 2018 to posting a $ 702 million loss in the first quarter of this year, its fourth-worst quarterly loss ever.

"To achieve this (record), we need a sustained output of 1,000 Model 3 & # 39; s a day," said Musk in the email, who was obtained by Business insider. Musk said in a leaked email from November 2018 that Tesla had reached the milestone of making 1,000 Model 3s per day, but apparently the company did not support that output. Tesla is expected to announce the delivery figures for the second quarter in early July.

Musk added: "If we rally hard, we can do it!"

Literal rally cries from Musk like this are not uncommon, especially late in a financial quarter, like last November. And this, like some others, comes in a particularly precarious time for Tesla.

Tesla's share is currently trading at a low of two years. The company just raised $ 2.7 billion to help stop the financial bleed in the first quarter, but Musk told employees in another email last week that Tesla should make "hardcore" changes to his spending practices to ensure that it doesn't go through everything. the money. These changes include the Chief Financial Officer of Musk and Tesla who approves staff expenses, building on a number of hands-on cost savings that were initiated last year.

The email also comes at a time when doubts about Tesla's performance have spread through Wall Street, even among some of the most supportive analysts and companies. Two days ago, Adam Jonas of Morgan Stanley lowered his worst conceivable expectation for Tesla's stock. Baird and Loup Ventures, two other companies that are typically optimistic about Tesla, have done the same lowered expectations.

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In a conference call with Morgan Stanley customers who leaked on Wednesday, Jonas explained why his views on Tesla are sober. "The delivery (from the company's cars) exceeds demand. They are burning in money. Nobody cares about Model Y," he said during the call, a recording of which was heard The edge. While Tesla raised new capital this month, it was almost at the lowest point of the number of analysts, such as Jonas, the company needs, he said. He also expressed concern over the billions of dollars in debt that remain on Tesla's books despite the company paying a convertible bond of $ 920 million in March.

Tesla went "from a growth story to a troubled credit and restructuring story" from the end of 2018 and now, said Jonas.

Jonas said that the demand for Tesla & # 39; s car & # 39; s is central to his concerns, and he is not the only one. During the course of 2019, Tesla constantly asked questions about the demand for its cars, despite the fact that the Model 3 became the best-selling EV in the world last year.

Tesla has sold hundreds of thousands of cars in North America, but most of them cost the same, if not much more, than the average selling price for a vehicle in the US. The cheapest, $ 35,000 version of the Model 3 finally arrived in February, but it's not as easy to buy as Tesla's other cars, the price is already increased the costs by $ 400and the company has been accused of up-selling customers on more expensive versions. Buyers of Tesla & # 39; s cars & # 39; s also no longer qualify for the full federal EV tax credit. The weaker first quarter of the company, coupled with the unwillingness (or inability) to sell cars at lower prices, some experts worried about the company's ambition to serve huge amounts of consumers.

Tesla "has built this colossal physical infrastructure to deliver more than a million cars a year, not 350,000 cars a year, and that's what caused this bleeding," Jonas said during the call.

Tesla admitted it too pushed so hard to finish 2018 with a high note that it might have registered a sales log could happened in the first quarter of 2019. That dip should have been supported by the arrival of Model 3 on the European and Chinese market, but Tesla ran into problems with both implementations. The European launch was somewhat marred by logistical issues – that led Musk to fly to Europe to personally supervise it. The Chinese launch has recovered from early stumbling blocks, but is now further risk thanks to retribution rights to Tesla's cars because of the ongoing trade war.