Tesla sinks after employees say to expect more Model 3 delays

Graham Rapier

Jan 26, 2018, 01:57 IST

Shares of Tesla lost more than 2% Thursday, bottoming out at $349.97, after employees told CNBC there would likely be more delays in Model 3 production.
"Scores" of anonymous employees have told reporter Lora Kolodny that previously disclosed battery production problems will slow down the mass-market sedan, Tesla's cheapest model to-date and one that has already seen delivery delays.
CNBC also reports that Tesla has had to borrow employees from one of its suppliers to manually assemble the batteries as a temporary low-tech workaround.
In January, Tesla delivered just 1,550 Model 3 sedans - slightly more than half of the 2,917 expected by Wall Street. Last summer, CEO Elon Musk tweeted that the company should be able to reach 20,000 Model 3 cars per month in December 2017. That did not turn out to be true.
This latest slump will likely be welcomed by short sellers who have ratcheted up their bets against Tesla to more than $31 million, according to data from S3 Partners.