Tesla CFO Quits From Job, As Company Vows Profits and Cheaper Cars

Tesla Inc announced on Wednesday that it would be starting to build cars in China and also lower down the price of its Model 3 sedans so that the company is able to make money at the start of the year 2019 and for every 2019 quarter, even though it failed to meet the profit expectation as charted out by Wall Street at the end of 2018. The company also announced that its Chief Financial Officer, Deepak Ahuja would be leaving the company. Well, the exit of Deepak Ahuja as well as failing to meet the Wall Street profit targets for the end of 2018 resulted in a slide in Tesla shares. After the announcement, the shares slumped nearly 6%. Zach Kirkhorn, Tesla’s vice president of finance, would be taking the place of Ahuja, who is around 56 years old. Chief Executive Elon Musk bragged that there is a strong request for the Model 3 sedans, as the company would be starting to export the car to Europe and Asia from its Fremont, California factory. However, Musk admitted that it was pre-eminent to cut costs in order to reduce the price of the vehicle for a bigger customer base. While the company indicated confidence that it would be able to post its profit during the first quarter in spite of fewer deliveries of its flagship S and X vehicles. Tesla has been cautioned of challenges like logistics and global deliveries of its new Model 3. Tesla reported that it plans to diminish the price of the Model 3 were conditional on quickly building its factory in China. It assumes to produce 500,000 vehicles a year in China by the last quarter of 2019 and the second quarter of 2020. To begin with, the Shanghai factory would be building 3000 Model 3s per week, while production at Tesla’s Fremont plant would hike to 7000 Model 3s per week by the year-end. Musk proclaimed a 7% workforce cutback earlier this month, stating that it was important to reduce costs to rise a lower-priced, yet still profitable, Model 3.

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