Other companies would love to have Tesla Motors Inc (NASDAQ:TSLA)’s problem, the thing keeping back its stock and the company as a whole.
This is that the company is facing demand for its cars that’s larger than the number of cars it can produce. However, according to Matthew Rocco of Fox Business, Tesla Motors Inc (NASDAQ:TSLA) plans to do just that – win versus itself in the supply and demand problem it has.
And what a nice problem Tesla Motors Inc (NASDAQ:TSLA) has. According to the article by Rocco, Tesla delivered 7,785 Model S cars to their owners during the just-ended quarter.
This is below estimates but the company’s founder, Elon Musk, said that his company essentially ran out of cars to sell. It wasn’t that they had nobody willing to fork over their hard-earned money for a state-of-the-art Tesla. They’ve got lots of people willing to do that.
“Essentially, in the third quarter, we sold every car – including ones in showrooms – that we had. Basically there was nothing left to sell,” Musk is quoted as saying.
Not that the company is without its problems. But still, some could argue that the problems it has would not be classified as problems in other companies.
For example, Rocco pointed out that the company lowered its deliveries estimate for the year from 35,000 to 33,000 as they made just 7,200 cars in the third quarter or about 2,000 less than what they wanted to make. This was due to a shutdown at its manufacturing facility last July.
Tesla Motors Inc (NASDAQ:TSLA) is working to resolve these problems though. Rocco said that the company has earmarked $350 million in the fourth quarter to boost production. The company is also in the process of simplifying the production process specifically the options for its cars. Rocco said that the company plans to be 50% more efficient this year and the next few years.
Shareholders of Tesla Motors Inc (NASDAQ:TSLA), one of the companies expected to grow this year, includes Daniel Benton’s Andor Capital Management which reported owning 1.25 million shares in the company.