Tesla Sued Over Low Model 3 Production Numbers

Personally, I don't believe Tesla fans and enthusiasts were paid to post positive assertions. They just believe their assertions are so.

Manufacturers pay people to troll social media and effuse.

It's more accurate to say that Tesla Motors is being sued for making misleading statements to investors (and the public at large), specifically with respect to their ability to convert Model 3 orders (or "production reservations") into actual sales in a timely manner.

If Musk had been honest about the excruciatingly slow Model 3 production ramp-up, then several things would have played out differently:
1) This lawsuit would not be happening
2) Tesla would likely have had much fewer Model 3 orders
3) Tesla's stock and bond offering would likely have been received with much less enthusiasm

Bold statements. You might get sued.

It's a public company and management needs to be very careful about what they say and the expectations they set. These type law suits will likely be SOP for Tesla.

I am still a fan of Tesla. And I still think BobM needs to see the light and head toward it. But I am more concerned about the $671m quarterly loss than any legal suit still trying to get class action status. If I was a judge hearing the case I would throw it out. You did not order a car from Ford or Toyota. There is enough public information and history with the company for the reasonable man to have a bit of doubt when it came to production numbers and delivery times. Having said that, if you sell stock and become a public company with shareholders, it isn't like running your own show, forward looking statements by the firm are taken seriously by investors and the market at large. Time will tell where this goes and if the company will still find a market of willing lenders....

I am long on TSLA (for a number of years now), and am realistic about their ambitious goals not being met within this year. I was however optimistic that they could get up to 2K/week by the end of the year, and still think it's possible (the 5K/week "goal" was a moon shot).

It was revealed that the bottleneck was in the battery pack processing at GF1, and they already worked on the solution. With the backing of Panasonic, I don't think that is an issue.

As for the huge loss - it stings but it's not entirely that bad. They had to spend huge amounts of investment in not only machinery but also plant expansions, ... and got little from the Model 3 to show for. Nothing fundamentally wrong with their plans, but again, the delay stinks.

Production ramps take time - they have several product lines going strong which needs well managed execution: solar panels, solar roofs, power walls, power packs, and of course the Model 3.

My main concern at this point is that with so many things happening at once and a lot of undue attention, the company can lose focus. The key is to stick to their highest priority - the Model 3 - and execute.

Another short term monkey wrench is the GOP attempt to revert the EV tax credits. It may cause many people to agitate, but the more you think about it, the less likely it will happen.

We must remember that Tesla is running from the same factory that GM/Toyota used in their joint venture for bilateral knowledge transfer. The GM/Toyota combo started with their lowest weekly production numbers, and went up from there. GM/Toyota's worst numbers were better than Tesla's best, in the same factory, and with far fewer GM/Toyota workers than Tesla's.

Something is amiss in Tesla's house, and in a big way.

Part of the problem is that Mr. Musk is extremely distracted by other projects - digging tunnels, going to space, worrying about AI...He just needs to focus entirely on the Model 3 right now.