Tesla drops after Musk warns of 'manufacturing hell'

Shares of Tesla dropped 3.5 percent on Monday after Chief Executive Elon Musk warned that the electric carmaker would face “manufacturing hell” as it ramps up production of its new mass-market Model 3 sedan.

At a launch event on Friday, Musk said customers had made over half a million advance reservations for the Model 3 as he handed over the first 30 cars to employee buyers, setting the stage for a major test of Tesla’s strategy to become a profitable electric car maker.

Tesla is counting on the Model 3 to help turn the cash-losing company into a profitable one and transform it from a niche player to a heavyweight in the automobile industry.

Investors already skeptical of Tesla’s aggressive growth targets focused on a warning by Musk that early production would be challenging.

Fuente: Reuters