Meanwhile, research firm Munro and Associates believe Model 3 would lift Tesla out of losses with a profit margin in the 25% range. However, market observers feel Musk is depending too much on increased Model 3 production so as to achieve profitability, something that is yet to be seen.
The waiting list for Model 3 currently stands at 400,000, according to experts at Edmunds, Kelley Blue Book, and Consumer Reports. By the end of June, Tesla had achieved its Model 3 production goal of 5,000 units a week and had announced plans to achieve 6,000 units per week by August. At the current production rate, Tesla could take 80 weeks to clear the reservation list.
Though the stock gained as much as 7% in the past three months, it has fallen 14% in the last one month. Tesla was trading down 1.59% at $318.90 on the Nasdaq at 1:13 pm ET.