While Tesla’s boat has been rocking as of late due to critics firing shots at their Autopilot system, company investors are still mostly worried about how successful the Model 3 will turn out to be.
According to some, the Model 3 is what keeps investors up at night, despite the Autopilot scandal and even the proposed acquisition of SolarCity.
“I really don’t care a whole lot” about the SolarCity acquisition, said David Whiston, a strategist at Morningstar, as reported by Autonews. “Investors are most concerned with nailing the Model 3, not becoming a solar company.”
In order to remain on schedule with their Model 3 launch, Tesla expects to be writing big checks for the rest of 2016 – on top of the plant upgrades and the new factory in Nevada that will supply batteries for the new car.
The EV maker currently expects its full-year capital spending to hit $2.25 billion if it’s to support the ramp-up for the Model 3 and its goal to produce 500,000 vehicles in 2018.
Despite Tesla saying they already have $3.25 billion on hand, many analysts believe the company will need to raise even more so that they won’t fall behind schedule. Timing will also be very important, especially if delays will cause investors to lose patience and sour on the idea of an affordable Tesla.
“The bigger question is: How long can Tesla lose money, and how wide can its losses get, before Wall Street cries foul?” said Karl Breuer, senior analyst for Kelley Blue Book.
While Musk repeatedly targeted July 1st 2017 as the start date for Model 3 production, he also said last week that “I don’t expect us to be a full production on July 1, but I have to drive all suppliers and internal efforts to that date knowing that some will fall short. And those that fall short will be cut out of the picture.”
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