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Korea Investment CORP Boosts Stake in Tesla Inc. (TSLA)

Korea Investment CORP Boosts Stake in Tesla Inc. (TSLA)

Tesla's other vehicles, the Model S and Model X, will be given less attention as the company shifts focus to getting the Model 3 up to speed.

"While we continue to make significant progress each week in fixing Model 3 bottlenecks, the nature of manufacturing challenges during a ramp such as this makes it hard to predict exactly how long it will take for all bottlenecks to be cleared or when new ones will appear", tips Tesla.

Tesla said the main constraint was its battery module assembly line at its Nevada Gigafactory, where the company had to redesign part of the production process.

But the Palo Alto, California-based company made just 260 Model 3 sedans in the third quarter due to "production bottlenecks", it said. Tesla's free cash flow fell to -$1.4 billion versus the -$1.2 billion projected by analysts.

The company said it now expects to build 5,000 Model 3s per week by late in the first quarter of 2018 from its original target date of December. The problems could also worry the over 500,000 customers who have put down a refundable deposit on the auto.

The company said it had $3.53 billion in cash and cash-equivalents as of September 30, compared with $3.04 billion at the end of the second quarter.

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On a positive note, Tesla reported that deliveries on the whole were up 18 percent year-over-year, with 26,137 Model S, X, and 3 deliveries during the period.

Tesla's soaring stock has made the company the second-most valuable USA automaker behind General Motors Co (GM.N), which had annual net profit of $9.4 billion in 2016. Tesla said net orders for those vehicles hit a record level in the third quarter, setting the stage for record deliveries in the fourth quarter.

Tesla will no longer reach its long-stated goal of producing 5,000 Model 3 cars per week in 2017, pushing that deadline back amid production hiccups and a massive $619 million quarterly loss. Its revenue totaled $2.51 billion down -6.84% from the previous quarter.

Tesla, Inc, formerly Tesla Motors, Inc, designs, develops, manufactures and sells fully electric vehicles, and energy storage systems, as well as installs, operates and maintains solar and energy storage products.

Tesla stock closed at $321.08 Wednesday, down 3.15%, and was falling further in after-hours trading.

Other institutional investors have also bought and sold shares of the company. That's far below the 1,500 Tesla was hoping to have delivered by this time.