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Tesla’s end-of-Q3 Model 3 production and delivery ramp looks like an electric car invasion

[Credit: Harbles/Twitter]

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It seems that Tesla board member Kimbal Musk was not kidding when he noted in a CNBC Closing Bell segment that the number of Model 3 which would appear in US roads near the end of September would be shocking to some. After Tesla’s volunteer-boosted delivery weekend — which saw members of the community dedicating some of their time to help out new owners with the features and functions of their electric cars — it is starting to become evident that Q3 2018 could be the quarter when the Model 3 starts its invasion of the US passenger car market.

The Model 3 is Tesla’s most ambitious vehicle. Radically designed from the ground up, the Model 3 was the car that would determine Tesla’s future. Elon Musk himself dubbed the vehicle as a “bet-the-company” situation, where its success or failure would equate to Tesla’s own rise or fall. It took a while for Tesla to hit its stride with Model 3 production, with the company only hitting its then-mythical goal of manufacturing 5,000 of the electric sedans in a week by the end of Q2 2018, six months later than initially expected.

Tesla accelerates its delivery push as Q3 nears its end. [Credit: @Harbles/Twitter]

The Model 3 has started to show its potential in the US passenger car market over the past months. Back in July, sales estimates from auto tracking website GoodCarBadCar suggested that Tesla sold 14,250 Model 3 in the month, making it 7th place in America’s list of best-selling passenger cars. Considering that mainstream, lower-priced vehicles like the Toyota Camry and the Honda Civic were included in GCBC‘s list, the Model 3’s 7th place was more than respectable.

While the Model 3’s sales in July were undoubtedly impressive, its August estimates were even more noteworthy. With an expected 20,450 units sold during August, the Model 3 became the 5th-best-selling passenger car in the US, beating out the Hyundai Elantra and the Nissan Altima. The Model 3 was even listed as the 15th-best-selling vehicle in GCBC‘s overall Top 20 list, which includes titans like the Ford F-150 and the Toyota Rav4.

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It is no secret that Tesla has a tendency to initiate a blitz of deliveries and production before a quarter ends. The company did this in Q1 when it was struggling to build 2,500 Model 3 in a week, and it adopted the same strategy for Q2 when it was trying to manufacture 5,000 of the electric sedans in a seven-day period. This third quarter, Tesla is aiming to produce 50,000-55,000 Model 3 — a record number of vehicles — while attaining profitability. For the company to get a shot at achieving these targets, cars have to be delivered to reservation holders. These efforts, of course, culminated in the recent volunteer-boosted delivery weekend.

As the Tesla community was mobilized in the United States and Canada, it soon became apparent that the company is moving a vast number of vehicles. In the United States, social media posts from Tesla owners shared images of numerous semitrailers transporting electric cars all across the country. Anecdotes from owners who volunteered in the weekend delivery push indicated that numerous vehicles were being moved to service centers, where reservation holders await them. Even a journalist who covers Tesla on a consistent basis shared a clip of a truck full of Model 3 being transported. In Canada, members of the Tesla community have also spotted large lots filled with Model 3, Model S, and Model X. Images taken of centers in British Columbia, Vancouver, Toronto, and Ontario, also depicted a busy, yet very productive volunteer-boosted weekend.

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In a letter to employees, Elon Musk wrote that Tesla is “about to have the most amazing quarter in (its) history, building and delivering more than twice as many cars as (it) did last quarter.” Kimbal Musk, for his part, noted that “it’s really gonna blow people’s minds how many Model 3s are gonna appear in America in just the next couple of weeks.” If Tesla’s busy delivery weekend, as well as the apparent invasion of electric cars being sighted in the US and Canada, are any indication, the company might very well exceed expectations this quarter. It will not even be surprising if the Tesla Model 3 moves up a couple more steps in GoodCarBadCar‘s list of best-selling passenger cars in the US for September.

Tesla has only been in the auto industry for 15 years, and over that time, it has transformed itself from a niche manufacturer that offered one small, quick, two-seater all-electric sports car into a company that is taking on veterans with premium electric cars that force legacy carmakers to come up with compelling EVs of their own. Tesla still has a long way to go before it masters the auto business, and Elon Musk himself would be the first to admit that gross miscalculations, such as the Model X’s overcomplicated design and the Model 3 ramp’s over-reliance on robots, have happened in the past. Despite this, Tesla remains a company that commands a strong following — one that is willing to pay it forward when needed.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Elon Musk

Tesla blacklisted by Swedish pension fund AP7 as it sells entire stake

A Swedish pension fund is offloading its Tesla holdings for good.

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tesla
(Credit: Tesla)

Tesla shares have been blacklisted by the Swedish pension fund AP7, who said earlier today that it has “verified violations of labor rights in the United States” by the automaker.

The fund ended up selling its entire stake, which was worth around $1.36 billion when it liquidated its holdings in late May. Reuters first reported on AP7’s move.

Other pension and retirement funds have relinquished some of their Tesla holdings due to CEO Elon Musk’s involvement in politics, among other reasons, and although the company’s stock has been a great contributor to growth for many funds over the past decade, these managers are not willing to see past the CEO’s right to free speech.

However, AP7 says the move is related not to Musk’s involvement in government nor his political stances. Instead, the fund said it verified several labor rights violations in the U.S.:

“AP7 has decided to blacklist Tesla due to verified violations of labor rights in the United States. Despite several years of dialogue with Tesla, including shareholder proposals in collaboration with other investors, the company has not taken sufficient measures to address the issues.”

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Tesla made up about 1 percent of the AP7 Equity Fund, according to a spokesperson. This equated to roughly 13 billion crowns, but the fund’s total assets were about 1,181 billion crowns at the end of May when the Tesla stake was sold off.

Tesla has had its share of labor lawsuits over the past few years, just as any large company deals with at some point or another. There have been claims of restrictions against labor union supporters, including one that Tesla was favored by judges, as they did not want pro-union clothing in the factory. Tesla argued that loose-fitting clothing presented a safety hazard, and the courts agreed.

tesla employee

(Photo: Tesla)

There have also been claims of racism at the Fremont Factory by a former elevator contractor named Owen Diaz. He was awarded a substantial sum of $137m. However, U.S. District Judge William Orrick ruled the $137 million award was excessive, reducing it to $15 million. Diaz rejected this sum.

Another jury awarded Diaz $3.2 million. Diaz’s legal team said this payout was inadequate. He and Tesla ultimately settled for an undisclosed amount.

AP7 did not list any of the current labor violations that it cited as its reason for

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Investor's Corner

xAI targets $5 billion debt offering to fuel company goals

Elon Musk’s xAI is targeting a $5B debt raise, led by Morgan Stanley, to scale its artificial intelligence efforts.

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(Credit: xAI)

xAI’s $5 billion debt offering, marketed by Morgan Stanley, underscores Elon Musk’s ambitious plans to expand the artificial intelligence venture. The xAI package comprises bonds and two loans, highlighting the company’s strategic push to fuel its artificial intelligence development.

Last week, Morgan Stanley began pitching a floating-rate term loan B at 97 cents on the dollar with a variable interest rate of 700 basis points over the SOFR benchmark, one source said. A second option offers a fixed-rate loan and bonds at 12%, with terms contingent on investor appetite. This “best efforts” transaction, where the debt size hinges on demand, reflects cautious lending in an uncertain economic climate.

According to Reuters sources, Morgan Stanley will not guarantee the issue volume or commit its own capital in the xAI deal, marking a shift from past commitments. The change in approach stems from lessons learned during Musk’s 2022 X acquisition when Morgan Stanley and six other banks held $13 billion in debt for over two years.

Morgan Stanley and the six other banks backing Musk’s X acquisition could only dispose of that debt earlier this year. They capitalized on X’s improved operating performance over the previous two quarters as traffic on the platform increased engagement around the U.S. presidential elections. This time, Morgan Stanley’s prudent strategy mitigates similar risks.

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Beyond debt, xAI is in talks to raise $20 billion in equity, potentially valuing the company between $120 billion and $200 billion, sources said. In April, Musk hinted at a significant valuation adjustment for xAI, stating he was looking to put a “proper value” on xAI during an investor call.

As xAI pursues this $5 billion debt offering, its financial strategy positions it to lead the AI revolution, blending innovation with market opportunity.

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Elon Musk

Tesla tops Cathie Wood’s stock picks, predicts $2,600 surge

Tesla’s future lies beyond cars—with robotaxis, humanoid bots & AI-driven factories. Cathie Wood predicts a 9x surge in 5 years.

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Cathie Wood shared that Tesla is her top stock pick. During Steven Bartlett’s podcast “The Diary Of A CEO,” the Ark Invest founder highlighted Tesla’s innovative edge, citing its convergence of robotics, energy storage, and AI.

“Because think about it. It is a convergence among three of our major platforms. So, robots, energy storage, AI,” Wood said of Tesla. She emphasized the company’s potential beyond its current offerings, particularly with its Optimus robots.

“And it’s not stopping with robotaxis; there’s a story beyond that with humanoid robots, and our $2,600 number has nothing for humanoid robots. We just thought it’d be an investment, period,” she added.

In June 2024, Ark Invest issued a $2,600 price target for Tesla, which Wood reaffirmed in a March Bloomberg interview, projecting the stock to reach this level within five years. She told Bartlett that Tesla’s Optimus robots would drive productivity gains and create new revenue streams.

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Elon Musk echoed Wood’s optimism in a CNBC interview last month.

“We expect to have thousands of Optimus robots working in Tesla factories by the end of this year, beginning this fall. And we expect to scale Optimus up faster than any product, I think, in history to get to millions of units per year as soon as possible,” Musk said.

Tesla’s stock has faced volatility lately, hitting a peak closing price of $479 in December after President Donald Trump’s election win. However, Musk’s involvement with the White House DOGE office triggered protests and boycotts, contributing to a stock decline of over 40% from mid-December highs by March.

The volatility in Tesla stock alarmed investors, who urged Musk to refocus on the company. In a May earnings call, Musk responded, stating he would be “scaling down his involvement with DOGE to focus on Tesla.” Through it all, Cathie Wood and Ark Invest maintained their faith in Tesla. Wood, in particular, predicted that the “brand damage” Tesla experienced earlier this year would not be long term.

Despite recent fluctuations, Wood’s confidence in Tesla underscores its potential to redefine industries through AI and robotics. As Musk shifts his focus back to Tesla, the company’s advancements in Optimus and other innovations could drive it toward Wood’s ambitious $2,600 target, positioning Tesla as a leader in the evolving tech landscape.

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