Another day of reckoning for Tesla Inc., another day of questions about the production of Model 3.
TSLA, + 3.01%
is scheduled to release results of the first quarter on Wednesday after the bell.
Model 3 production updates will dominate the subsequent conference call with investors as they have rolled off the board since the first Model 3 in July.
And it's no wonder: The mass-market sedan, which starts at $ 35,000, is considered the engine of Tesla's high ambitions, which include adding more passenger vehicles to its lineup, filling the pre-orders of its all-electric heavyweight lorry and sale his solar roof tiles.
Related: Tesla to make Model 3 around the clock and engage hundreds to reach emails, says
Wednesday, chief executive Elon Musk has a clear mission: Strong investors that earlier production with the Model 3 kinks were ironed out.
In a leaked email message to Musk employees, the CEO said Tesla will increase production of Model 3 in May to 3,000 to 4,000 sedans per week and a "constant" production rate by the end of the year 6,000 model 3s a week.
Tesla promised a run rate of 5,000 units of Model 3 per week by the end of the second quarter, after previously more ambitious targets had been exhausted, but Musk wrote on the leaked email that Tesla wants to build a cushion. Tesla would be able to reach a "steady" 6,000-week rate several months later.
Tesla in early April reported that the production rate of the first Model 3 model was still below its targets.
Following is expected:
Revenues: Analysts surveyed by FactSet expect Tesla to adjust for a loss of $ 3.54 per share in the quarter, a loss of $ 1
Tesla recently posted adjusted earnings in the third quarter of 2016, reporting an adjusted profit of 71 cents per share.
Estimize, a crowdsourced platform that gathers estimates from Wall Street analysts and buy-side analysts, hedge fund managers, corporate executives, academics and others, expects a loss of $ 3.19 per share. Analysts surveyed by FactSet expect Tesla to generate $ 3.28 billion in revenue in the first quarter, which would equal $ 2.69 billion a year ago. Analysts surveyed by Estimize expect sales of $ 3.25 billion.
Share Reaction: Tesla shares have fallen 6% since the beginning of the year, not as much as competitors – General Motors Co.
and Ford Motor Co.
F, + 0.52%
shares lost 8% and 8.2% over the same period. The decline represents a 0.2% loss for the S & P 500 Index
SPX, + 0.11%
and a decline of 1.7% for the Dow Jones Industrial Average.
Tesla's performance is worse over a 12 month period, with stocks down more than 5% to 12% for the S & P and 16% for the Dow. Competitors are also doing better, GM's shares were up 9%, and Ford has gained less than 0.1% in the last 12 months.
Other Topics: Analysts are likely to be boring Musk and other top executives from Tesla on another consistent Wall Street employment when it comes to the vending machine of Silicon Valley: Will they or will they not be capital markets in this? Year open up?
Tesla said it will not need it, but there are many people who believe you might want to raise money.
See also: Tesla shifts responsibility for crash victim as a family worker
Morgan Stanley analysts recently said they modeled for a capital injection of $ 2.5 billion from a capital increase in the third model have quarter.
Analysts also said they expect the company to miss its own Model 3 production deadline, reaching the coveted 5,000 units per week by the end of the fourth quarter.
Further Model 3 delays, said Bernstein analysts in one note, would not necessarily "make or break Tesla," but reinforce the company's cash burn.
And then there is the possibility to output model 3s and the option to output quality model 3. Expect analysts to press management for reports that have questioned the build quality of the car.
Tesla was also able to disclose the current model 3 reservation numbers, a number that has not been updated since the early days of the car. To reserve a Model 3, potential buyers must pay a $ 1,000 deposit.