Time to end the Elon Musk taxpayer gravy train

Does the future Tesla (TSLA) really rest on the Model 3 - the company's first attempt at producing a mass market electric vehicle?

To bring the electric vehicle to the mainstream market, the company is planning a Model 3 production ramp: In August, 100 more of the battery-sedan will be built, followed by 150 in September.

And there are questions about whether the Model 3 will cut into sales of the the higher-end Model S, which could put pressure on Tesla's margins. The demo, however, may occur early next year, Musk said during the company's second-quarter earnings call Wednesday.

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Tesla's new Model 3 is the talk of the town after its flashy debut, but a large chunk of early adopters got cold feet and canceled their reservations before mass-production even started.

The results came within a week of Tesla's long-awaited Model 3 launch, where Musk revealed that first off the production line would be a $44,000 version of the vehicle with a 310-mile (500 km) range. And despite the launch of the more affordable Model 3, Tesla has reported that its luxury cars, the Model S and Model X are also increasingly in demand from consumers.

During Wednesday's Q2 earnings call, Tesla CEO Elon Musk stated that their should be "zero concern" that "Tesla will achieve a 10,000/week unit production rate by the end of next year.", solidifying Tesla's past production expectations. However, the Model 3 version with a 310-mile range has a $44,000 starting price tag, undercutting Musk's promise to deliver a cheap vehicle to the masses.

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The loss grew 15 percent to $336 million from a loss of $293 million in the April-June quarter a year ago.

Analysts, on average, expect the investment-heavy Tesla to report a loss of $1.80 per share, narrower than last year's loss of $1.61. Making 500,000 vehicles in a year, as Tesla has vowed to do, would mean increasing its 2016 production nearly sixfold, according to Reuters. The increased costs could compel the company to raise more money through a debt offering than originally expected.

It also noted that outside the U.S., Model 3 orders won't begin being delivered until "late 2018", with right-hand drive markets not receiving shipments until 2019.

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