Elon Musk Sets Tesla Model 3 Production, Delivery Dates; Stock Futures Up – Investor's Business Daily

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Futures for the S&P 500 index, Nasdaq 100 and Dow Jones industrial average rose early Monday morning ahead of a shortened trading session.

Tesla (TSLA) CEO Elon Musk tweeted Sunday night on the West Coast there will be a “handover party” for the first 30 Model 3 sedans on July 28, adding that production will ramp up to 100 in August and above 1,500 in September. That met his Friday promise on Twitter to provide “news on Sunday” regarding Tesla’s next electric car.

Musk said Model 3 production “looks like” it could hit 20,000 by December, which would be a 240,000 annual run rate, not including Model S and Model X output.

Musk also said that the Model 3 has met all regulatory requirements for production two weeks early. The “SN1” likely refers to serial number 1, implying the first Model 3 will be produced Friday.

Meanwhile, General Motors (GM), Ford (F), Fiat Chrysler (FCAU) and most other automakers will release June U.S. sales figures on Monday while ISM’s manufacturing index is on tap.

S&P 500 index futures rose 0.3% above fair value. Nasdaq 100 futures climbed 0.3% and Dow futures advanced 0.35%.

The Nasdaq composite sank 2% last week, falling below its 50-day moving average, as Google parent Alphabet (GOOGL) and several other big techs joined Apple (AAPL) below that key level. The S&P 500 and Dow industrials, buoyed by financials and energy stocks, fell modestly last week.

The Model 3, an entry-level luxury electric car, is set to begin production this month, with mass output set for year-end and a 500,000-vehicle run rate by the end of 2018. But Tesla has never given a set date for when deliveries would begin.

Tesla shares fell 5.7% to 361.61 last week amid a continued sell-off in leading tech stocks. But Tesla is well above key technical levels and isn’t far off its record high of 386.99.

U.S. Auto Sales On Tap

General Motors, Ford and Fiat Chrysler are expected to report lower domestic sales vs. a year earlier. U.S. new-vehicle sales appear to have peaked since last year’s record levels. Used-vehicle prices are falling sharply due to a still-swelling pool of off-lease cars, SUVs and trucks.

GM and Ford shares rose last week, with GM retaking its 200-day moving average and Ford moving above its 50-day. Fiat Chrysler dipped last week, dropping below its 50-day line but is in a flat base.

Tesla does not release monthly sales figures, but it does release quarterly figures within three days of the end of the quarter. So it may release Q2 delivery figures on Monday, July 3.

In Q1, Tesla delivered just over 25,000 vehicles, up 69%. It’s has forecast first-half deliveries of 47,000-50,000, suggesting a Q2 outlook of 22,000-25,000. Analysts generally have predicted Q2 deliveries of around 24,000. But with so much focus on the Model 3 and the much-more ambitious production targets going forward, it’s unclear how of an impact the Q2 figures will have.

ISM Manufacturing Index

At 10 a.m. ET, the Institute for Supply Management will release its U.S. manufacturing index for June. Economists expect a slight rise to 55.1 from May’s 54.9. Readings over 50 signal expansion.


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