Musk tells Tesla employees to prove 'naysayers' wrong

Musk tells Tesla employees to prove 'naysayers' wrong

Musk tells Tesla employees to prove 'naysayers' wrong

The embattled executive, who reached a settlement with the Securities and Exchange Commission last week over charges related to his disclosure of a go-private plan, also told employees that Tesla is nearing profitability.

Tesla shares jumped 17 per cent on Monday as signs it had met targets for quarterly auto production added to relief at CEO Elon Musk's settling of a lawsuit with regulators that had threatened to force him out.

The company said it made 53,239 Model 3 vehicles, in line with its outlook for 50,000 to 55,000, and almost double the number produced in the second quarter.

Tesla did say that it had missed its weekly Model 3 production target on Tuesday and outlined a series of barriers it faced due to the worsening of President Donald Trump's trade war with China.

Tesla produced over 5,300 Model 3 cars in the last week of September, falling short of its target of 6,000.

Tesla was sorely in need of good news.

The company handed over 83,500 vehicles in the third quarter, doubling its total in the prior three months. The agency initially sought to bar him from serving as an officer or director, a pursuit that would have overshadowed the progress the company has made in manufacturing more vehicles.

Tesla Inc announced record quarterly vehicle production numbers on Tuesday but warned it was facing major problems with selling cars in China due to new tariffs that will force it to accelerate investment in its factory in Shanghai. Musk has told upset customers that "we've gone from production hell to delivery logistics hell", and the CEO has incomprehensibly suggested the solution is for Tesla to build its own vehicle carriers, despite no evidence of any shortage of auto haulage capacity.

Analysts hoped the deal, which enforces oversight of Musk's public communications, would put an end to several months of turmoil that has prevented investors from focusing on a business that churned out a reported 80,000 cars in the third quarter.

The numbers initially lifted Tesla shares but they fell later as investors anxious about the company's warning that a 40-percent tariff on Chinese imports of its cars was blocking sales in the world's biggest electric vehicle market.

On Tuesday morning, Tesla released its production and delivery results for Q3 2018.

It is increasingly hard to make sense of Tesla's math.

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