Results from electric cars maker Tesla Inc (NASDAQ:TSLA) are likely to be all about the ramp-up of production of the new model 3.
The company has already confessed that production bottlenecks were hampering the launch of the car, but that did not stop it firing hundreds of workers last month after completing its annual performance reviews.
READ: Tesla fires hundreds of workers despite trying to ramp-up production
The company produced just 260 Model 3 cars in September, which was waaaaaaaaaay short of the 1,500 vehicles it had hoped to produce.
The company has previously projected that it would be producing 20,000 Model 3 cars a month by the end of the year, so it will be interesting to see whether the company sticks by that guidance when it releases its third quarter results after the bell on Wednesday.
"We believe the Model 3 ramp is one to two months behind schedule, but are not concerned as TSLA successfully ramped production of the Model S and Model X, which are more complicated vehicles, and we are confident TSLA will achieve its production targets over the intermediate term," declared Ben Kallo, an analyst at Baird.
The demand for the Model 3 is certainly there, so any delay in ramping up production is costing them money in cash flow terms.
READ: Tesla could miss its ‘iPhone moment’ warns Barclays if Model 3 production problems persist
NEW VIDEO: The one you've been waiting for! The very first in-depth look at the Tesla Model 3 #tesla #model3 https://t.co/nfAsiYJwi7 pic.twitter.com/IfeJcjL8Gx
— Model 3 Owners Club (@Model3Owners) October 27, 2017
More than 450,000 people are on the Model 3 waiting list and Tesla is under pressure to deliver, having fallen behind its own production targets and making just 260 cars last quarter.
READ: Tesla to open factory in Shanghai with blessing of Chinese government
There were reports last month that people on the waiting list were selling their US$1,000 reservations for as much as US$4,000 as new buyers looked for ways to jump the queue.
If you were to make a US$1,000 reservation today, Tesla reckons it would take about 18 months before you got to drive your new car.
Including other cars – such as the Model S and Model X – Tesla's founder Elon Musk expects the company to produce 10,000 cars this year.
Analysts expect the stock market glamor stock to post a quarterly loss of US$2.28 a share on revenue of US$2.9bn.
Tesla shares lost 2.44% to stand at US$323.56 each.