Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Photo: Chuck Burton / AP

Tesla shares plunged by as much as 5% in after hours trading and CEO Elon Musk was on the defensive in an earnings call as the electric-carmaker reported a $619.4 million loss today — its biggest ever. Again and again, the usually chest-out Musk told Wall Street analysts about the growing pains of ramping up to produce hundreds of thousands of cars a year, at one point declining even to forecast how many units of the ostensibly company-changing Model 3 Tesla would produce in the last quarter of the year, apart from finally saying it will be in the thousands per week.

"We are in a vertical climb here," he said of the company's ramp-up difficulties.

What is vexing Musk: Analysts regard the Model 3 as make or break for Tesla, which is spending terrific sums of money to ramp up not only the Model 3 but the gigafactory, the gigantic lithium-ion battery factory Musk is building in Nevada. Everything is on the line for Tesla. Musk either needs to get the kinks out — Tesla was supposed to be producing 5,000 Model 3s a day by the end of the year, a milestone that is now pushed out to next year — or he could see his pumped-up share price absorb a far more serious hit.

The biggest problem: Musk said battery production is the greatest bottleneck. He said one unidentified battery subcontractor had completely fallen down on the job, requiring a wholesale rewrite of a software program from scratch over a four-week period. "There's still a long way to go" to resolve battery production, he said.

  • The effect of baring his soul was to make him seem not in full control of the process at a time one might have expected him to have long-ago taken charge, especially given the gravity of the situation not only to Tesla, but to the creation of an electric car industry, which he has always said is his aim.
  • It is not too dramatic to say that, given the absence of any other electric with the enormous consumer demand enjoyed by the Model 3, the near-term future of global electric cars rides on him resolving the problems and making hundreds of thousands of more or less problem-free units of the mainstream vehicle.
  • One wonders why Musk — given that his prior S and X models were both delivered more than a year late — he didn't simply wait before delivering the Model 3 until the production facilities were ready.

Musk punts: Tesla's chief said everything will be better next year, and basically told the analysts to wait until the next earnings call, when there would be much more favorable news. A few weeks into the new year will bring "exponential growth" in Model 3 production, he said. "We're on it. It's going to take a few months longer than we expected."

Go deeper

Everyone wants to be an influencer

Illustration: Aïda Amer/Axios

The number of people looking to become online influencers has exploded during the pandemic.

Why it matters: Almost anyone can find themselves in a position to become an influencer, and brands are throwing billions of dollars at online content creators.

At least 3 dead after Amtrak train derails in Montana

Photo: Jacob Cordeiro/Twitter

An Amtrak train derailed near Joplin, Montana, resulting in at least three deaths and multiple injuries to passengers and crew on Saturday, per authorities and a company statement.

The big picture: 141 passengers and 16 crew members were estimated to be on the Empire Builder train, traveling from Chicago to Seattle and Portland, when eight of the 10 cars derailed about 4p.m., Amtrak said early Sunday.

Updated 9 hours ago - Politics & Policy

Federal judge blocks vaccine mandate for NYC teachers

Students are dismissed from the first day of school at PS 133 in Brooklyn on Sept. 13. Photo: Michael Nagle/Xinhua via Getty Images

A federal appeals court is set to hear a challenge Wednesday to a vaccine mandate planned for New York City school employees.

Why it matters The vaccine mandate was set to begin on Monday, prompting concerns over staffing shortages in schools across the nation's largest school system. But a judge on Friday temporarily blocked the measure, per AP.