Tesla shares pop amid upbeat sentiment on energy business, Model 3 production


Chief Executive Elon Musk revealed plans to build the electric vehicle maker's first foreign factory in China and reaffirmed a goal to build 5,000 Model 3 sedans per week by the end of this month at the company's annual meeting Tuesday.

The Tesla Model Y is scheduled to go on sale in the first half of 2020.

Manufacturing has befuddled Tesla ever since Musk, 46, predicted 11 months ago that "production hell" would be ahead for the first auto the company was trying to make in high volumes.

"But instead of recognizing the need for independent and effective board leadership, Tesla has renominated three directors who exemplify the company's failure to evolve".

Elon Musk has survived a bid to strip him of a key role at Tesla as shareholders re-elected three directors to the electric auto maker's board.

The comments by Musk followed shareholders' votes to reappoint three directors who were up for election during the meeting: private equity investor Antonio Gracias, Twenty-First Century Fox CEO James Murdoch and food industry entrepreneur Kimbal Musk, Elon's brother. In an earlier letter, the company said Model 3 net reservations surpassed 450,000 at the end of the first quarter. Musk said it likely won't be widely available until the beginning of 2019, as Tesla focuses on building and selling the more expensive versions of the sedan during its production ramp up, in an effort to maximize revenue.

Shares fell as much as 7 per cent after Musk's snub, evaporating US$2 billion from Tesla's stock market value.

The company said the votes failed by a "super majority" of votes but offered no numbers. Tesla released another teaser image of the Model Y affordable SUV.

"This is the most excruciating hellish several months I've ever had. but I think we're getting there", he told investors.

Tesla head of worldwide sales Robin Ren disclosed the planned location of Tesla's second "Gigafactory" while co-founder and chief Elon Musk fielded questions at an annual shareholders meeting.

Musk also said Tesla will build a European Gigafactory, which may be announced by the end of the year. And an electric motorcycle from a company with Tesla's brand image would certainly have meant a lot of consumer interest, and possibly even sales for the electric vehicle company.

The report says that 8 percent of depositors had configured a Tesla for production in April, which deems the purchase nonrefundable. Which is pretty good for a vehicle that nobody has managed to get their hands on yet.