Tesla Inc. has a rocky road ahead

SUN VALLEY ID- JULY 07 Elon Musk CEO and CTO of SpaceX CEO and product architect of Tesla Motors and chairman of SolarCity attends the Allen & Company Sun Valley Conference

And the company needs to be squarely on the path to profitability if it is going to bring the 2,900 jobs it promised to its solar panel factory in South Buffalo.

The carmaker added that it would not need to seek additional financing this year as a result, other than borrowing on its standard credit lines. The company's valuation didn't rise so high with people unaware that Tesla was spending all of its cash and more on future growth and market share in a rapidly forming market or five.

Invest wisely, my friends. A small number of those workers were invited to voluntarily help build Model 3 cars instead.

The company has set a next objective to attain 2,500 units produced per week. By December 2017, Tesla expected to be churning out 5,000 Model 3s a week but had pushed that target back to the end of the second quarter of 2018.

Meanwhile, investors raised their bets against Tesla shares by 10 per cent since mid-March, according to data provided by S3 Partners LLC on Tuesday, betting the market has misjudged the electric auto maker's prospects.

Tesla has both immediate and long-term concerns.

American EV maker EV has reported its most productive quarter in its history. Although it ended up behind schedule, Tesla says it was able to double the weekly production rate of the Model 3 throughout the quarter by addressing bottlenecks, which involved temporarily shutting down factories to upgrade equipment. Some analysts have said that Tesla needs to produce around 5,000 Model 3s a week to generate enough cash to support its business-a milestone the company once said it could reach by the end of previous year, and now is trying to reach by the end of June. At the same time, it encountered a new hitch - a drop in sales of its two established products, the Model S sedan and Model X sport-utility vehicle.

The news isn't entirely rosy as Tesla confirmed nearly all Model 3 cancellations have been the result of delays. This liquidity position is not adequate to cover: 1) the approximately $500 million in minimum cash that we estimate Tesla must maintain for normal operations; 2) a 2018 operating cash burn that will approximate $2 billion if Tesla maintains high discretionary capital expenditures to increase capacity; and 3) convertible debt maturities of approximately $1.2 billion through early 2019.

Unfortunately, Tesla doesn't break down its delivery results per quarter, but since the Model 3 is now only available in the U.S., we can safely assume that all the deliveries happened in America.

This bold statement rests on Tesla getting to 5,000 Model 3s a week - a target already subject to some doubt because its predecessor has just been missed. The 12-month consensus price target on the stock is $325.58.

We should have a better idea in the next few weeks. However, huge hurdles remain as Palo Alto, California-based Tesla tries to turn the page on one of the most hard chapters in its short history.

Hundreds of thousands of people have pre-ordered the Model 3 and are eagerly awaiting delivery.

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