Wednesday is “Critical” for Tesla

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tesla charging station

Last month, Elon Musk sent an email to employees saying that this quarter is “critical” for Tesla’s long term outlook. So everyone is very interested to see what will be revealed in the company’s financial report on Wednesday afternoon.

Musk has indicated that he expected the company to be profitable in 2016, and that hasn’t happened yet, so time is running out. In thirteen years, Tesla has only once turned a profit, a small one in 2013.

Even if the news is good, all is not smooth sailing in Tesla-land. Consumer Reports has just placed the company near the bottom of their rankings for reliability. Considering that Consumer Reports once stated that a Tesla car broke their rankings from being so good, this is a real comedown. Nevertheless, they have ranked the company 25 out of 29 on the reliability scale.

Another thing which isn’t doing Tesla any good is the lack of capacity for meeting demand. When the company recently noted on its website that all new orders for the Model 3 would not be delivered until late 2018, it opened the doors for other auto manufacturers to step in.

GM, for instance, made a point of announcing that their electric car, the Chevy Bolt, will be available by the end of this year. The company’s vice president of global propulsion systems, Dan Nicholson, mentioned the fact at an engineering conference this past April, in what seemed like a specific jab at Tesla. Promoting the Bolt, he said,

“It will have 200 miles of (electric) range, and it will be in production by the end of 2016, so it’s not necessary to put down $1,000 and wait until 2018 or sometime after that.”

Now it’s just a matter of seeing how Tesla will fare after this “critical” report on Wednesday afternoon.

 

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