Tesla Nevada Gigafactory Fails To Impress Morgan Stanley & Goldman Sachs; Analysts Uncertain About Tesla’s Financial Prospects
Ritwik RoyTesla Nevada Gigafactory is now a rage as it is being considered as the future of high-tech manufacturing. But not everybody is happy, especially Wall Street Analysts. A tour of the Gigafactory facility by Morgan Stanley and Goldman Sachs could not satisfy them or their views on Tesla's short-term financial prospects.
According to the Australian Financial Review, the electric vehicle manufacturer recently announced that its fourth quarter deliveries have missed its own target. This has made Tesla Model 3 owners tensed, who believe that the cars will be made available by end 2017. Tesla Motors' Nevada Gigafactory has been hailed all across the globe after it began production on Wednesday.
The Goldman Sachs team, lead by David Tamberrino, revealed that even though the Gigafactory tour turned out to be helpful in understanding the processes and layouts for manufacturing lithium ion battery cells and packs, they found lack of quantitative updates for this year and also ramp expectations. The factory is churning out batteries for Tesla's energy and automobile products.
The Tesla Model 3 production is also heavily dependent on the Nevada Gigafactory and this where Morgan Stanley's Adam Jonas raised concerns. Jonas is also concerned about the factory's costs. Wall Street is only focusing on Tesla's profit numbers and is naturally not satisfied. While in December 2016, Tesla's shares soared more than 20 percent, partly because of the Gigafactory opening.
Jonas said that "Tesla's Gigafactory is real: Real tech. Real innovation. Real jobs. Real big capital requirements" though the company remains heavily dependent on support from investors to complete its mission. Jonas was also a bit skeptical on when the Tesla Model will start benefitting from the Nevada facility. The investors seem to be disappointed because of missing information on how the facility will help reduce costs.
Stay tuned on Mobile & Apps for more updates on Tesla's Nevada Gigafactory and Tesla Model 3 production.
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