Tesla TSLA now has some electrified problems.
The electric car maker led by the big-thinking Elon Musk said Monday evening that it delivered 220 Model 3s during the third quarter. The problem: Musk boasted in August that Tesla would produce 1,500 Model 3s just in September, ramping up to 20,000 a month come December. Overall, Tesla delivered 26,150 vehicles in the third quarter, logging a personal best for sales of the Model S and Model X.
But the bad whiff on Model 3 deliveries raises two key questions on this stock market darling. One, why in the world is Tesla still trading on a market cap of more than $57 billion? The reason why Tesla shares have skyrocketed 50% over the past year is in large part due to optimism on the Model 3. If Musk can’t deliver these cheap electric cars in mass, and keep emerging rivals like General Motors GM at bay, the market has to readjust its thinking on Tesla.
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