Tesla Loses No. 1 Spot in Market Value Among U.S. Automakers<br />Most critical to Tesla’s troubles was a new, slower timetable for the Model 3 introduction,<br />and a separate acknowledgment of problems manufacturing battery packs, a critical component of its cars, in the second quarter, said David Whiston, an analyst at Morningstar.<br />Concern over Model 3 production was compounded when the company said its giant battery plant in Nevada had struggled to produce enough battery packs.<br />In the second quarter, Tesla produced more cars than it delivered to customers, causing some analysts to question whether demand for current models — the Model S sedan<br />and the Model X, a sport-utility vehicle — is reaching a plateau.<br />Last year, Mr. Musk predicted that Tesla would sell about 100,000 Model 3s this year.<br />Ramping up Model 3 production “remains a huge challenge,” he said.<br />With the Model 3 in the lineup, Tesla expects to sell about 500,000 cars a year by 2018.
