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In a report released this morning, Tesla said it built 34,494 vehicles in the first quarter of this year: a total of 24,728 Model S sedans and Model X crossovers and 9,766 Model 3 sedans.

Some analysts said there were signs that the company might have prioritised the cheaper vehicle, seen as crucial to its profitability, over its Model X SUV and its more-established and expensive Model S sedan.

Wall Street is feeling more cautious about Tesla after the electric automaker once again missed production expectations for its newest Model 3 sedan. It also commented on canceled Model 3 preorders, saying orders remained "stable" in the quarter and cancellations came from a lack of available features, such as all-wheel drive, and production delays. Elon Musk has taken over responsibility for Model 3 production.

Given the progress made thus far and upcoming actions for further capacity improvement, we expect that the Model 3 production rate will climb rapidly through Q2. Achieving this production rate could allow Tesla to improve gross margins and operating cash flows significantly.

Additionally, the U.S. National Transportation Safety Board said on Sunday it was "unhappy" that Tesla made public investigative information regarding the crash of one of its self-driving cars last month, which killed the driver. A limited number of workers from the Model S and Model X lines were also given the opportunity to help out the Model 3 line during the final week of March.

"Are they really at 2,000 or did they just stuff their system to achieve 2,000 for last week?" said David Kudla, Chief Executive and chief investment strategist at Mainstay Capital Management, who said he now has no bets on Tesla.

"While it seems a ideal storm is weighing on the shares, we are buyers into pressure as Model 3 production ramps". Tesla's goal for the quarter was to produce not less than 2,500 Model 3s every week and implemented some remarkable measures in its quest to hit that target.

Failure to meet targets and pressures on funding prompted Moody's downgrade last week, saying that Tesla was likely to raise more than $2 billion in new capital, partly to cover about $1.2 billion in convertible bonds due by March 2019. That is equal to the amount of cash and available unused credit Tesla had at the start of this year. Our initial customer satisfaction score for Model 3 quality is above 93%, which is the highest score in Tesla's history.


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