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00:00:00
>> Even if you're buy it no options at all.>> For Tesla CEO, Elon Musk, it's supposed to be a time of celebration. The first of his long awaited mass market Model 3's rolling off the production line starting Friday, slightly ahead of schedule. But, ironically, all anybody is talking about is what can possibly go wrong.
00:00:19
At the root of the problem, Reuters San Francisco Bureau Chief Peter Henderson says, it's Tesla's long-standing struggle to make enough batteries for its two other electric vehicles, which led to a severe production shortfall in recent months.>> They didn't give any details, so a lot of questions are raised about what went wrong with the battery pack production.
00:00:41
Tesla says that it solved the problem. Now, the Model 3, the mass market car, should be using a different type of battery pack. But it still raises questions, if you don't know what caused those battery pack problems. It raises questions about what that means, if anything, for the Model 3.
00:00:57
>> And that's causing investor angst over Musk's ability to stick to production plans of 20,000 Model 3's per month by the end of this year. Although the stock is rebounding slightly Friday after Tesla landed a contract to install the world's largest battery system, capable of lighting up 30,000 homes in the event of a blackout.
00:01:18
It's been a punishing week for investors. Tesla shares tanking about 20% from the record high, set just recently, making this the stock's worst week since February, 2016. Adding to the full throttle of negativity surrounding Tesla, the Model S this week failed to get a top score in a test by the Insurance Institute for Highway Safety.
00:01:40
And competition is heating up with Volvo recently announcing plans to go all electric or hybrid by 2019. The loss of roughly $8 billion in stock market value since last Friday means something else. The launch of the Model 3 is happening at the same time Tesla loses the crown as America's most valuable car maker.
00:02:03
That title now goes back to General Motors.