After a disappointing quarter of deliveries, a record month of production, and now several weeks of downtime at multiple plants, investors have a lot to ponder.
The Model Y assembly line will be shut down for two weeks in July and the Model 3 line will be stopped for 20 days in July, according to a report. The upgrade work at the factory is expected to be finished by early August according to people familiar with the matter.
The plant will take a two week break starting July 11. The German site reported that the company wants to double its production rate. The company built a lot of Model Ys at the factory.
These plans were not mentioned in the production and deliveries statement. In June, the company made more vehicles than any other month in its history, but it didn't report as many deliveries as analysts had expected.
The last two quarters were short of deliveries.
The company statements are listed here.
Philippe Houchois said in a July 3 note that the quarter was expected to be weak. The Chief Executive Officer's comments about the company's new plants being "money furnaces" suggest that the company's free cash flow may have been affected by capital disruptions.
The biggest blow to the company's performance last quarter was caused by the Covid outbreak in China.
The factories near Berlin and Austin, Texas, are just getting going. The opening party was held at the former on March 22 and the one on April 7.
Musk danced in Germany and wore a cowboy hat and sunglasses in Texas, but the CEO sounded more subdued a few weeks later.
"Berlin and Austin are losing billions of dollars right now because there's a ton of expense and hardly any output." Getting Berlin and Austin functional is one of our main concerns.
In the three months that ended in June, the shares of the electric car maker plunged by a record amount. The decline in the S&P 500 was the biggest since the beginning of the year.
The earnings report for July 20th was scheduled by the company.
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