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This article originally appeared on Bitcoin Magazine.

This article originally appeared on Bitcoin Magazine.

• Tesla expects to make 6,000 Model 3 sedans in a week by the end of August, the company said in its second-quarter earnings letter, and a total of 50,000 to 55,000 Model 3s in the third quarter.
• In 2019, the company expects to make 10,000 Model 3s per week.
• During July, Tesla made around 5,000 Model 3s per week multiple times.
• Achieving a consistent production rate of 5,000 Model 3s and 7,000 total vehicles per week is critical to the company's goal of becoming profitable.

Tesla expects to make 6,000 Model 3 sedans in a week by the end of August, the company said in its second-quarter earnings letter, and a total of 50,000 to 55,000 Model 3s in the third quarter. 

In 2019, the company expects to make 10,000 Model 3s per week. While most of its production lines should be able to produce 10,000 Model 3s per week by the end of 2018, the company said, some areas of production will not be ready to handle that rate.

During July, Tesla made around 5,000 Model 3s, as well as 2,000 Model S sedans and Model X SUVs, in a week multiple times. The company did not specify how many times it hit that number.

Achieving a consistent production rate of 5,000 Model 3s and 7,000 total vehicles per week is critical to the company's goal of becoming profitable. Tesla struggled to increase production after the Model 3 was launched in July 2017 and twice missed its self-imposed deadline to produce 5,000 in a week, but hit that rate at the end of June. During the second quarter, the company made more Model 3s than in the prior three quarters combined, in part due to a new production line, known as GA4, the company assembled in an outdoor, tent-like structure.

Tesla said in its second-quarter earnings report that its main assembly line, GA3, has not yet achieved a production rate of 5,000 Model 3s per week, but the company expects the line to hit that rate soon. 

On Tuesday, CNBC reported that Tesla was flying in non-manufacturing employees to help with production at its vehicle and battery factories. 

A Tesla representative told Business Insider that temporary reassignments are voluntary and do not have a major effect on production. The representative also said that employees who are reassigned are placed in roles that match their skills, and those who do not opt for reassignments will not be punished with negative performance reviews.

If you've worked for Tesla and have a story to share, you can contact this reporter at mmatousek@businessinsider.com

SEE ALSO: We visited a Tesla store and a Mercedes-Benz dealership — here are the biggest differences between the two

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• President Donald Trump requested the US Trade Representative explore the option to hit $200 billion worth of Chinese imports to the US with a 25% tariff.
• Trump originally proposed only a 10% tariff on the goods.
• The move would be a major escalation of the next planned round of tariffs.
• The tariffs could go into effect within the next few months.

President Donald Trump could be about to double down on the next phase of the trade war with China

Senior administration officials told reporters Wednesday that Trump asked the US Trade Representative to explore the possibility of imposing a 25% tariff on $200 billion worth of Chinese imports to the US. The original proposal proposed hitting the same amount of goods with a 10% tariff.

"This week, the President has directed that I consider increasing the proposed level of the additional duty from 10 percent to 25%," US Trade Representative Robert Lighthizer said in a statement. "The 25% duty would be applied to the proposed list of products previously announced on July 10. "

The tariffs could not go into effect until September, the officials said, and no final decision had been made on whether to impose the tariffs. The public has until September 5 to comment on the proposal.

In his statement, Lighthizer said the option for higher tariffs on the Chinese goods was designed to pressure Beijing into economic reforms, such as curtailing the theft of US intellectual property by Chinese firms.

"The increase in the possible rate of the additional duty is intended to provide the Administration with additional options to encourage China to change its harmful policies and behavior and adopt policies that will lead to fairer markets and prosperity for all of our citizens," Lighthizer said.

The tariff increase would represent another major escalation of the trade war between the US and China, which has seen roughly $74 billion worth of trade between the two countries get hit with tariffs.

The proposed increase drew criticism from industry groups like the National Retail Federation, which said the move would ultimately hurt US consumers.

"Increasing the size of the tariffs is merely increasing the harm that will be done. And it’s even more than that — it’s two-and-a-half times the amount originally proposed," Matthew Shay, the NRF's CEO, said in a statement. "Tariffs are an unacceptable gamble with the U.S. economy and the stakes continue to rise with no end in sight."

This next wave of tariffs was originally announced in July, after China hit the US with countermeasures in response to Trump's initial wave of tariffs. If tariffs on another $200 billion worth of goods proceeds, about half of all Chinese goods coming into the US would be subject to trade restrictions.

The Trump administration released a preliminary list of goods that could be subject to this wave of tariffs. The products range from agricultural products like pork and apples to consumer goods like wool hats and vacuum cleaners.

The Chinese government has warned that the country will retaliate with trade restrictions of equal measure if Trump follows through on the threat.

Read more: Trump's trade war is getting serious — here's why it started, what it means for the US economy, and how it could hit you

The fight over trade kicked off in March when Trump threatened to hit $50 billion worth of Chinese imports with a 25% tariff. Attempts at avoiding the tariffs fell apart in May and the countries officially imposed tariffs in early July.

Trump's trade fights, including the battle with China, are starting to seep into the US economy based on recent data. Concerns about the trade war are popping up in various business and consumer confidence surveys, prices for goods hit by various tariffs are on the rise, and businesses are starting to feel the squeeze from the increased prices.

Here's a timeline of the US-China trade war so far:

• March 1: Trump announces tariffs on all imports of steel and aluminum, including metals from China.
• March 22: Trump announces the US will soon hit $50 billion worth of Chinese goods with a 25% tariff. China announces tariffs in retaliation for the steel and aluminum tariffs and promises a response to new announcement.
• April 3: The US Trade Representative announces the full list of Chinese goods that could be subject to the tariff. There is a mandatory 60-day comment period for industries to ask for exemptions from the tariffs.
• April 4: China rolls out a list of more than 100 US goods with roughly $50 billion that will be subject to retaliatory tariffs.
• May 19: After a visit from Chinese officials, the two countries announce the outline of a deal to avoid the tariffs.
• May 29: The White House announces that the tariffs on $50 billion of Chinese goods will move forward, with the final list of goods released June 15. The move appears to wreck the nascent trade deal.
• June 15: Trump rolls out the final list of goods subject to new tariffs . Chinese imports worth $34 billion will be subject to the new 25% tariff as of July 6, with another $16 billion worth of imports subject to the tariff at a later date. China retaliates with an equivalent set of tariffs.
• June 18: Trump threatens a 10% tariff on another $200 billion worth of Chinese goods.
• July 6: The first tranche of tariffs on $34 billion worth of Chinese goods goes into effect, China responds in kind.
• July 10: The US releases the initial list of $200 billion worth of Chinese goods that could be subject to a 10% tariff. 

SEE ALSO: Trump's trade war is getting serious — here's why it started, what it means for the US economy, and how it could hit you

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NOW WATCH: An early bitcoin investor explains what most people get wrong about the cryptocurrency

• Tesla on Wednesday reported second-quarter losses that were greater than Wall Street's expectations.
• Shares dipped immediately after the release, before rallying back into the green in after-hours trading.
• Revenues beat expectations, and cash burn slowed. 
• Follow Tesla's stock price in real-time here.

Shares of Tesla rose as much as 3.8% in after-hours trading Wednesday following the electric car maker's second-quarter earnings report that showed a greater loss than what Wall Street had expected, on better-than-anticipated revenues.

Here are the key numbers:

Earnings: -$3.06 per share (-$2.90 expected)

Revenue: $4.0 billion ($3.97 expected)

Cash burn — a key metric for Tesla as it seeks to become profitable this year — was $739.5 million, down slightly from $745.3 million last quarter.

"It’s fair to say that no production ramp of any other product has been as closely watched and debated as that of Model 3. We are proud of our team for producing roughly 7,000 Model 3, Model S and Model X vehicles during the last week of June," Elon Musk, Tesla's founder and chief executive, said in a letter to shareholders.

"We also want to thank all of our reservation holders who have waited patiently and who have been supportive of our mission. While we faced multiple obstacles during this ramp, our team worked hard to find solutions, and in the end, it was all worth it."

The company maintains that if it can keep up this production rate of 7,000 vehicles per week (or 350,000 per year) it can become profitable this year, as previously forecast. 

A conference call is scheduled for 5:30 p.m. ET. Last quarter, Musk made headlines by interrupting and ignoring several questions from Wall Street analysts whom he said represented sell-side investment theses. 

Tesla gained 1.1% in trading Wednesday and down 5.8% since the beginning of 2018 before the earnings release. 

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Stocks were mixed Wednesday after the Federal Reserve left its key rate steady and as trade tensions between the US and China escalated. Tech was mostly higher after Apple earnings. The dollar climbed higher, and the 10-year Treasury yield jumped above the key 3% level for the first time in more than a month.

Here's the scoreboard:

Dow Jones industrial average: 25,337.82 −77.37 (-0.30%)

S&P 500: 2,815.95 -0.34 (-0.01%)

Nasdaq Composite: 7,707.29 +35.50 (+0.46%)

1. Washington more than doubled its tariff threats against Beijing. The White House is preparing to increase the size of proposed tariffs on an additional $200 billion worth of Chinese goods to 25% from 10%, the Wall Street Journal reports. 
2. As expected, the Federal Reserve held its benchmark interest rate unchanged. At the same time, the central bank noted the strength of the economy, a signal it remains on track for a rate hike in September. 
3. The Trump administration is set to impose sanctions on Turkey, a NATO ally. The sanctions, which target Turkey's minister of justice and minister of interior, are meant to penalize the government for failing to release a detained American pastor who has been imprisoned in the country for nearly two years. The Turkish lira plunged to a record low following the announcement.
4. Earnings season rolls on. Apple surged after it topped Wall Street expectations, with its market cap now approaching $1 trillion. Tesla reported mixed results after the bell — follow Business Insider for live updates.

And a look at the upcoming economic calendar:

• The Bank of England holds a policy meeting.
• Barclays, CBS and BMW report earnings.

See also:

America's housing market is raising a 'large red flag' for the economy

MORGAN STANLEY: The stock market is heading for its biggest sell-off of the year — here's how to protect yourself

SEE ALSO: GOLDMAN SACHS: A hidden cause of the last stock meltdown is still a huge threat — here's how traders can get ahead of the next sell-off

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• Tesla on Wednesday reported a wider second-quarter loss than analysts had expected.
• The electric-car maker beat forecasts for revenue, and its cash burn decreased compared with the first quarter.
• Tesla said it hit a weekly production rate of 5,000 Model 3s "multiple times" in July and aimed to increase production to 10,000 "as fast as we can."
• Watch Tesla trade in real time here. 

Tesla on Wednesday reported a wider second-quarter loss than analysts had expected but said it expects to be profitable later this year as it ramps up production of its Model 3 sedan.

The company reported an adjusted loss per share of $3.06 (-$2.90 expected), while revenue topped estimates at $4 billion ($3.97 billion forecast).

The results were highly anticipated, following an eventful quarter for the electric-car and solar-panel maker.

Tesla recently pushed back the delivery timelines for new orders of two of three versions of its Model 3 sedan. Investors and analysts have been interested in any updates on the pace of production of the mass-market cars, as well as whether Tesla may need to raise additional capital even after CEO Elon Musk said otherwise.

Tesla said it hit a weekly production rate of 5,000 Model 3s "multiple times" in July and aimed to increase that to 10,000 "as fast as we can." The electric-car maker said it expected to produce 50,000 to 55,000 Model 3s in the third quarter.

Tesla reported a negative free cash flow of $739 million, smaller than analysts had forecast and less than the $1.05 billion burn in Q1.

"Going forward, we believe Tesla can achieve sustained quarterly profits, absent a severe force majeure or economic downturn, while continuing to grow at a rapid pace," the company said.

Tesla's stock fell 3% immediately after the release before rebounding to gain as much as 3.6%. It has fallen 3% this year through the market close on Wednesday.

See also:

• Traders keep finding new ways to bet against Tesla
• MORGAN STANLEY: Here are the 7 tech companies most likely to get acquired in the next 12 months
• GOLDMAN SACHS: Big-money investors are dominating the market with the help of 10 stocks — here's the list and how they can continue crushing it

Join the conversation about this story »

NOW WATCH: An early bitcoin investor explains what most people get wrong about the cryptocurrency

• Wall Street dealmakers are putting in place new provisions to help protect clients from #MeToo scandals, according to Bloomberg News. 
• The so-called "Weinstein" clauses in some cases require a selling company to compensate a buyer if sexual misconduct scandals by executives come to light. 

Wall Street dealmakers are putting new provisions in place to help protect clients in light of the rise of #MeToo movement. 

The so-called "Weinstein Clause" is gaining popularity among Wall Street bankers who advise on merger and acquisition deals, according to a report by Bloomberg News. The clause provides a way to protect their buyer client from past scandals among senior executives at the selling company. 

“Social due diligence is becoming more and more important and, particularly for founder-centric businesses, money is being put aside to address #MeToo issues,” Gregory Bedrosian, chief executive officer of boutique investment bank Drake Star Partners, told Bloomberg. 

Some of the "Weinstein" clauses state that a buyer can take back some money from the selling company if certain sexual misconduct scandals come to light that damages the businesses' reputation. 

The name of the clause alludes to the alleged sexual misconduct accusations made against Hollywood icon Harvey Weinstein. Across male-dominated industries, women are speaking out against long-ignored behavior by some of America's most powerful executives, including the likes of Charlie Rose, and most recently CBS' Leslie Moonves.

Read the full report, here.

See also:

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NOW WATCH: An early bitcoin investor explains what most people get wrong about the cryptocurrency

The much-vaunted cryptocurrency which spun-off from Bitcoin in a hard fork is celebrating its first anniversary today. Bitcoin cash started its journey on 1st August and shot up to the $800 level in a matter of minutes on that day. Currently, its value less than its starting price with a price of around $765 on

The post Bitcoin Cash Celebrates First Anniversary appeared first on CCN

• The Turkish lira fell past 5 per dollar on Wednesday.
• The Trump administration announced it's planning to sanction Turkish officials.
• Watch the Turkish lira trade in real time here.

Turkey's currency plummeted to a record low against the dollar Wednesday after the Trump administration said it plans to impose sanctions on its NATO ally for failing to release a detained American pastor who has been imprisoned in the country for nearly two years. 

The lira fell more than 1.7%, past the key level of 5 versus the dollar at 2 p.m. ET. It put in a low of 5.0157 per dollar about 30 minutes prior. 

The Treasury Department will place sanctions on Turkey's minister of justice and minister of interior, White House Press Secretary Sarah Sanders confirmed at a press briefing.

Sanders said the officials played "leading roles" in the arrest and detention of 50-year-old Andrew Brunson. The Turkish government arrested Brunson in Izmir in 2016 for allegedly aiding a failed military coup, accusations the pastor denies.

The lira has shed nearly a third of its value against the dollar this year. It has faced mounting pressure following the June reelection of President Recep Tayyip Erdogan, who grabbed newly-granted executive powers in the historic political change.

Erdogan has signaled he will wield more influence over the country's central bank in his term. The self-proclaimed "enemy of interest-rates" has pushed for unorthodox policies like cutting borrowing costs amid accelerating inflation. 

SEE ALSO: WALL STREET WARNS: Trump's trade policies could bring the US back to an economic horror from the 1970s

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NOW WATCH: An early bitcoin investor explains what most people get wrong about the cryptocurrency

Morgan Stanley, one of the world’s largest investment banks, has just poached Credit Suisse’s resident “bitcoin expert” to head the former’s digital assets unit. As first reported by eFinancialCareers, Morgan Stanley, which ranks sixth among U.S. banks with $858 billion in total assets, hired Andrew Peel last month to serve as its new “head of

The post Morgan Stanley Poaches Credit Suisse ‘Bitcoin Expert’ to Head Crypto Division appeared first on CCN

• The Federal Reserve announced Wednesday that it decided during a two-day policy meeting to keep its key interest rate unchanged.
• Traders had widely expected this decision, anticipating that the Fed would raise the benchmark for borrowing costs two more times this year including next month.
• The Fed said the economy was growing at a "strong" pace and reaffirmed its plans to raise interest rates gradually.

The Federal Reserve held its benchmark interest rate unchanged Wednesday and reaffirmed its plans to continue raising borrowing costs at a gradual pace.

The decision to hold rates had been widely expected and came after a two-day meeting of the Federal Open Market Committee, which dictates monetary policy.

"This statement is a placeholder ahead of the quarterly forecast meeting next month," Ian Shepherdson, the chief economist at Pantheon Macroeconomics, said in a note.

Traders expect the Fed to raise borrowing costs twice more this year. They see a 92% probability that it will raise the fed funds rate to a range of 2% to 2.25% in September, according to Bloomberg.

"Economic activity has been rising at a strong rate," the Fed's statement said, thanks to strong household spending and business investment. An advance estimate of second-quarter gross domestic product released Friday showed that the economy grew at an annualized rate of 4.1%, the fastest in nearly four years.

During his semiannual congressional testimony in mid-July, Fed Chairman Jerome Powell said that, with appropriate monetary policy, the job market would remain strong and inflation would stay around the 2% target for "several years."

He said that it was difficult to predict the outcome of the ongoing trade disputes but that a prolonged trade war would hurt the economy.

"We see no reason, then, to change our view that the Fed will hike in both Sep and Dec this year, but we don't expect any serious change in the language of the statement until December or March," Shepherdson said.

With seven rate hikes in the bag since the financial crisis, the Fed is contemplating whether to remove language in its statement that continues to describe borrowing costs as low. Minutes of its meeting in June showed that some FOMC officials debated how communications may evolve if the economy continued to make progress and was able to withstand higher rates.

Read more: Here's how the Fed raises interest rates and why it matters

Wednesday's 1 statement showed the Fed still planned to continue raising interest rates gradually.

Here's the Fed's statement:

"Information received since the Federal Open Market Committee met in June indicates that the labor market has continued to strengthen and that economic activity has been rising at a strong rate. Job gains have been strong, on average, in recent months, and the unemployment rate has stayed low. Household spending and business fixed investment have grown strongly. On a 12-month basis, both overall inflation and inflation for items other than food and energy remain near 2 percent. Indicators of longer-term inflation expectations are little changed, on balance.

"Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects that further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective over the medium term. Risks to the economic outlook appear roughly balanced.

"In view of realized and expected labor market conditions and inflation, the Committee decided to maintain the target range for the federal funds rate at 1-3/4 to 2 percent. The stance of monetary policy remains accommodative, thereby supporting strong labor market conditions and a sustained return to 2 percent inflation.

"In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.

"Voting for the FOMC monetary policy action were: Jerome H. Powell, Chairman; John C. Williams, Vice Chairman; Thomas I. Barkin; Raphael W. Bostic; Lael Brainard; Esther L. George; Loretta J. Mester; and Randal K. Quarles."

See also:

• There may be a simple way to profit if one of Wall Street's most feared recession signals is triggered soon
• MORGAN STANLEY: Here are the 7 tech companies most likely to get acquired in the next 12 months
• GOLDMAN SACHS: Big-money investors are dominating the market with the help of 10 stocks — here's the list and how they can continue crushing it

Join the conversation about this story »

NOW WATCH: An early bitcoin investor explains what most people get wrong about the cryptocurrency

This promoted article originally appeared on Bitcoin Magazine.

• Tesla is set to report second-quarter earnings after the closing bell Wednesday.
• Analysts expect the electric-car maker to report an adjusted loss of $2.90 per share on revenue of $2.97 billion.
• Production numbers will be at the front of investors' minds after Tesla said it reached its goal of making 5,000 Model 3s per week on July 1.
• Shares were trading slightly lower ahead of the report.
• Follow Tesla's stock price in real-time here.

Shares of Tesla fell about 0.7%, dropping below the $300 level that has plagued the stock all year, Wednesday ahead of the electric-car maker's earnings report that's due out after the closing bell.

Wall Street is expecting Tesla to post an adjusted loss of $2.90 per share on revenue of $2.974 for the second quarter. Cash burn and total production vehicle numbers will be put under the microscope as the company gears up to meet CEO Elon Musk's goals for profitability by the end of the year.

Tesla's cash burn jumped to $745 million in the first quarter. That's up from the previous quarter's 276.8 million, but well off it's high of $1.42 billion from the third quarter of 2017. Cash burn has been a huge concern for Wall Street analysts, some of whom Musk interrupted and ignored on the last earnings call. Both Goldman Sachs and UBS see a capital raise being necessary in the near future. 

Even if Tesla reaches profitability, a capital raise may be necessary to fuel its planned projects in China and Europe, UBS said this week. It may also need the money to pay for debt that is soon coming due. Last week, investors were paying more than ever for credit default swaps to insure against a potential Tesla bond crisis.

"If Tesla is able to take advantage of high average selling prices (ASPs) in Q3 or Q4 it is likely they become profitable for the quarter, and we would expect a capital raise to follow," analyst Colin Langan said. He expects the company to report a cash burn of $900 million on Wednesday.

On July 1, Musk proclaimed that Tesla was "finally a real car company" after hitting its goal of producing 5,000 Model 3 sedans per week. The newest vehicle is supposed to be Tesla's first "mass-market" affordable car, but facing a cash crunch, the company has only produced higher-end all-wheel-drive models that go for sticker prices well into the $65,000 range. There has been no word from the company on when the $35,000 base model might be available.

Shares of Tesla are down 7.2% since the start of 2018.

Now read: 

SEE ALSO: Wall Street is beginning to worry Tesla may need another cash infusion

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NOW WATCH: An early bitcoin investor explains what most people get wrong about the cryptocurrency

It is not a new day for Bitcoin speculators, for the prevailing bearish bias in the market has been intensified further following a strong selling round. The day started with BTC/USD sticking to its chop-mood before invalidating a significant support level at 7814-fiat yesterday. We had discussed two outcomes in our previous analysis following the

The post Bitcoin Price Intraday Analysis: BTCUSD Bearish Pattern Continues appeared first on CCN

Bitcoin's price rallied 21 percent over the course of July, snapping its first two-month losing streak since 2016.

Welcome to Finance Insider, Business Insider's summary of the top stories of the past 24 hours. Sign up here to get the best of Business Insider delivered direct to your inbox.

The conditions that triggered the latest stock meltdown are still in place — and the market is vulnerable to another disaster

In the aftermath of the February market correction — which saw the S&P 500 decline 11% — market liquidity dried up.

It was an understandable reaction following such a jarring event, which featured the implosion of multiple volatility-linked products , rattled investors to their core, and even led to a talent raid on Wall Street .

Goldman Sachs has since performed an autopsy on the February sell-off and, in the process, asked an interesting question: What if tight liquidity conditions actually caused the sharp decline — or at least made it worse?

As it turns out, it's not that outlandish of a question.

You no longer need a card to get cash from nearly every Chase ATM

At nearly every one of JPMorgan Chase's 16,000 ATMs, customers no longer need a card to take out cash.

Chase announced Wednesday that it has rolled out cardless transactions to the vast majority of its ATM network, meaning customers no longer need a physical debit card and can instead retrieve cash using a mobile wallet — such as Apple Pay, Google Pay, or Samsung Pay — on their smartphone.

Google reportedly wants to launch a censored search engine in China 

Google is reportedly planning to launch a censored version of its search engine in mainland China, after an eight-year absence from the country.

The Intercept obtained leaked documents showing that CEO Sundar Pichai met with a Chinese government official in December 2017, as part of a renewed push to re-enter China.

According to the report, the project is codenamed "Dragonfly", and engineers have created a custom Android app variously nicknamed "Maotai" and "Longfei."

The app was demonstrated to Chinese officials, and a final version could launch within the next six to nine months, but will hide terms about human rights, democracy, religion, and peaceful protest. It would also block sites like the BBC and Wikipedia. The Chinese government is yet to give final approval, The Intercept said.

Morgan Stanley has poached a Credit Suisse crypto banker to head 'digital asset markets'

Morgan Stanley has poached a 12-year veteran of Credit Suisse to lead "digital asset markets" at the bank.

Andrew Peel joined Morgan Stanley as head of digital asset markets in June 2018, according to his LinkedIn profile. A spokesperson for Morgan Stanley confirmed the appointment to Business Insider but declined to comment further.

Peel spent 12 years at Credit Suisse, according to his LinkedIn, most recently serving as a vice president of sales and trading innovation. In that role, he was a "subject matter expert for bitcoin and cryptocurrency," according to his profile.

Peel's appointment comes amid a flurry of activity from investment banks around crypto. Goldman Sachs is reportedly planning to set up a bitcoin trading desk and JPMorgan recently appointed its first head of crypto-asset strategy. Investment banks are attracted by the eye-catching returns of bitcoin in 2017 and have begun to seriously assess cryptos as a potential new asset class despite poor price performance this year.

In markets news

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Supporters of litecoin often tout the sixth-largest cryptocurrency as “silver to bitcoin’s digital gold,” but one cryptocurrency says it’s also a diamond in the rough. Writing in an eight-page report published on Tuesday, eToro senior market analyst Mati Greenspan argues that the litecoin price is trading at a “massive discount to what it should be

The post Litecoin Price ‘Massively Discounted’: Cryptocurrency Analyst appeared first on CCN

Supporters of litecoin often tout the sixth-largest cryptocurrency as “silver to bitcoin’s digital gold,” but one cryptocurrency says it’s also a diamond in the rough. Writing in an eight-page report published on Tuesday, eToro senior market analyst Mati Greenspan argues that the litecoin price is trading at a “massive discount to what it should be

The post Litecoin Price ‘Massively Discounted’: Cryptocurrency Analyst appeared first on CCN

• Chase has rolled out cardless transactions to nearly all of its 16,000 ATMs.
• The feature, which it started to deploy in 2016, allows Chase customers to open their mobile wallet, tap their phone, and then enter their pin number to gain access to their account. 
• The largest banks in the US have been investing millions in updating the capabilities and physical appearances of their thousands of ATMs as their digital and mobile customer bases balloon. 
• It makes life more convenient for customers, but it could also result in savings for the bank. 

At nearly every one of JPMorgan Chase's 16,000 ATMs, customers no longer need a card to take out cash. 

Chase announced Wednesday that it has rolled out cardless transactions to the vast majority of its ATM network, meaning customers no longer need a physical debit card and can instead retrieve cash using a mobile wallet — such as Apple Pay, Google Pay, or Samsung Pay — on their smartphone.

At ATMs with a cardless symbol (see below), customers can open their mobile wallet, tap their phone, and then enter their pin number to gain access to their account. 

Here's Chase's simple visual guide to performing a cardless transaction: 

Chase began rolling out the feature — which uses the "near-field communication" technology that enables transactions from mobile wallets — in 2016, and Bank of America and Wells Fargo have debuted similar capabilities as well. 

The largest banks in the US have been investing millions in updating the capabilities and physical appearances of their thousands of ATMs as their digital and mobile customer bases balloon. 

While cardless transactions are a convenient perk to Chase's more than 30 million active mobile customers, it could also result in savings for the bank. 

It costs banks about 20 cents to replace a lost, stolen, or otherwise corrupted card, according to A.T. Kearney, a sum that can add up when you serve tens of millions of customers, as Chase and its largest competitors do.  

The more customers can rely on their already omnipresent smartphones, the likelier they are to phase out cards that fatten their wallets and can more easily be lost or compromised. 

See also:

• We spoke with the creator of the Chase Sapphire Reserve about millennials, myths, and the other challenges she'll confront in her next job at JPMorgan
• Citi has poached a Chase executive to run its 'Shark Tank'-type program that lets employees build startups from within the company

Join the conversation about this story »

NOW WATCH: An early bitcoin investor explains what most people get wrong about the cryptocurrency

This article originally appeared on Bitcoin Magazine.

The US Securities and Exchange Commission (SEC) could approve a Bitcoin ETF in the next 18 months, said Ali Hassan, the CEO, and one of the three co-founders of asset manager Crescent Crypto. Hassan, a former Goldman Sachs executive, was speaking at Bloomberg Markets studios about the considerable potential of passive management strategies in cryptocurrency markets.

The post SEC-Approved Bitcoin ETF Possible in 18 months: Crescent Crypto CEO appeared first on CCN

• Shares of MoviePass owner Helios & Matheson are down nearly 50% Wednesday.
• The selling comes after the company announced a new restriction on its service. 
• Helios & Matheson shares have plunged more than 99% this year.

Shares of MoviePass owner Helios & Matheson are crashing Wednesday — down almost 50% at $0.25 apiece —  less than 24 hours after announcing a new restriction on its service.

Late Tuesday, the movie-subscription service said it would no longer guarantee that every movie showtime will be available on its app. That announcement came less than a day after MoviePass said it would raise prices from $10 a month up to $14.99 and that it wouldn't support big-ticket movies like  "The Meg" or Disney's "Christopher Robin" until weeks after their releases. The company says these changes could help reduce its cash burn by 60%. 

Shares of Helios & Matheson have been in a downward spiral this year, plunging by more than 99%. Last week, the company announced a 1-for-250 reverse stock split in an attempt to lift its share price above the Nasdaq's $1 minimum.

The reverse split temporary propped up the value of Helios & Matheson shares to $22.50, but that same day they began plunging again. A few days later, the MoviePass app began to experience a "service interruption" because its owner was unable to make certain required payments. HMNY had to borrow $5 million to get the app up and running again. 

Helios & Matheson is expected to report its second-quarter results on August 14. 

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• Shares of MoviePass owner Helios & Matheson are down nearly 50% Wednesday.
• The selling comes after the company announced a new restriction on its service. 
• Helios & Matheson shares have plunged more than 99% this year.

Shares of MoviePass owner Helios & Matheson are crashing Wednesday — down almost 50% at $0.25 apiece —  less than 24 hours after announcing a new restriction on its service.

Late Tuesday, the movie-subscription service said it would no longer guarantee that every movie showtime will be available on its app. That announcement came less than a day after MoviePass said it would raise prices from $10 a month up to $14.99 and that it wouldn't support big-ticket movies like  "The Meg" or Disney's "Christopher Robin" until weeks after their releases. The company says these changes could help reduce its cash burn by 60%. 

Shares of Helios & Matheson have been in a downward spiral this year, plunging by more than 99%. Last week, the company announced a 1-for-250 reverse stock split in an attempt to lift its share price above the Nasdaq's $1 minimum.

The reverse split temporary propped up the value of Helios & Matheson shares to $22.50, but that same day they began plunging again. A few days later, the MoviePass app began to experience a "service interruption" because its owner was unable to make certain required payments. HMNY had to borrow $5 million to get the app up and running again. 

Helios & Matheson is expected to report its second-quarter results on August 14. 

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• Oil shed more than 1% on Wednesday.
• EIA data showed US crude inventories unexpectedly rose.
• Watch oil trade in real time here.

Oil prices slumped Wednesday, extending losses after their worst month in two years, after data showed US crude inventories rose unexpectedly.

West Texas Intermediate dropped 1.2% to $67.60 per barrel at 10:35 a.m. ET. Brent, the international benchmark, was down 1.7% to $72.99 a barrel.

US commercial crude inventories jumped by 3.8 million barrels to in the week ending July 27, the Energy Information Administration said.

Analysts had expected a drawdown of between 2.5 and 3 million barrels last week, according to Reuters. Unofficial estimates from the American Petroleum Institute, a group that represents oil and gas producers, on Tuesday showed a crude inventory build of 5.59 million barrels.

"Oil prices have extended losses today after an unexpected build in US crude stockpiles encouraged sellers to attack the commodity," said FXTM analyst Lukman Otunuga in an email. "Could the party be coming to an end for bulls?"

Crude prices saw the biggest monthly declines in two years in July, shedding about 7% after the Organization of Petroleum Exporting Countries (OPEC) and other supply-cutting countries led by Russia agreed to roll back coordinated production constraints that had been bolstering prices since last year.

The cartel ramped up production to the highest level of 2018 last month, according to a Reuters survey out Monday, with an output boost of about 70 million barrels per day. 

WTI is up about 40% year-over-year. 

See also:

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Canadian cryptocurrency exchange and brokerage platform Coinsquare has listed XRP for trading, placing another arrow in its quiver as it prepares to challenge Coinbase — its dominant competitor to the south — to become the trading venue of choice for retail investors. The Toronto-based Coinsquare on Monday announced that it had added XRP — the

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• David Einhorn's $5.5 billion Greenlight Capital hedge fund lost 18.3% in the first half of 2018 while the benchmark S&P 500 was positive. 
• Tesla was the firm's "second biggest loser" he said, thanks to its 29% jump in the same period. 
• Einhorn is swapping his Tesla Model S for a Jaguar I-PACE SUV, he told investors Tuesday.
• Elon Musk responded on Twitter, saying he will "send Einhorn a box of short shorts to comfort him."
• Follow Tesla's stock price in real-time here. 

Billionaire hedge fund manager David Einhorn hasn't had a fun year.

His $5.5 billion Greenlight Capital lost 18.3% in the first half of 2018, he told investors in a letter Tuesday.

The losses were exacerbated by Tesla’s 29% gains last quarter — decimating Einhorn’s short position in the stock — making it his "second biggest loser" for the six-month period.

Elon Musk — Tesla's chief executive with a noted disdain for short sellers— tweeted in response to the letter that he will "send Einhorn a box of short shorts to comfort him through this difficult time."

"By all available evidence, the company has had a difficult year," Einhorn wrote about the automaker in his letter, which was published by the finance blog Zero Hedge. "TSLA has had trouble demonstrating efficient production, and it has delayed capital spending which pushes out future growth opportunities in the Model Y and the Semi.

"TSLA is accommodating Model 3 customers who are willing to pay for premium features – making the car more of a luxury item with a smaller addressable market than the mass market car TSLA had promised. This high-grading of the backlog combined with the reduction in the government subsidy by early next year, new product delays and the emergence of viable competition for the Models S and X means that 2019 should be a very challenging year for TSLA. We doubt the entry-level Model 3 will be produced profitably anytime soon, if ever."

Einhorn also said that he was pleased his Tesla lease had ended and that he was excited to get the I-Pace, which is Jaguar's first electric SUV and powers Waymo's fleet of self-driving taxis.

Tesla is scheduled to report its second quarter earnings on Wednesday after the closing bell. Analysts polled by Bloomberg expect the company to report an adjusted loss of $2.90 per share on revenues of $2.974 billion. Musk has repeatedly claimed the company will be profitable by the end of the year. 

Tesla is down 6% this year amid increasing worries about a potential default, with insurance on its bonds, hitting their most expensive prices ever last week.

SEE ALSO: Investors are paying more than ever to protect against a Tesla bond crisis

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Forget cryptojacking, SIM hijacking now seems set to become even more lucrative for criminals looking to cash in with bitcoin from the burgeoning space. A 20-year old college student from Boston, Massachusetts was arrested in California earlier this month on charges of being part of a gang that hacked cellphone numbers before stealing over US$5

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Bitcoin's price could trade in a narrow range in the next 24 hours, courtesy of oversold conditions reported by short duration technical charts.

• Morgan Stanley has hired Andrew Peel as head of digital asset markets.
• Peel spent 12 years at Credit Suisse and is a self-declared "subject matter expert for bitcoin and cryptocurrency."
• Peel's appointment comes amid a flurry of activity from investment banks looking at the crypto space.

LONDON — Morgan Stanley has poached a 12-year veteran of Credit Suisse to lead "digital asset markets" at the bank.

Andrew Peel joined Morgan Stanley as head of digital asset markets in June 2018, according to his LinkedIn profile. A spokesperson for Morgan Stanley confirmed the appointment to Business Insider but declined to comment further.

Peel spent 12 years at Credit Suisse, according to his LinkedIn, most recently serving as a vice president of sales and trading innovation. In that role, he was a "subject matter expert for bitcoin and cryptocurrency," according to his profile.

Peel's move was first reported by eFinancialCareers. He will be based between Zurich and London in his new role, according to his LinkedIn.

It is not clear whether the digital asset markets role is a new one or what exactly Peel will do in this new position. The bank declined to comment.

The ICO Journal, a blog covering cryptocurrency markets, said in April that it was in touch with a source close to Morgan Stanley who said the bank was rapidly planning to launch a crypto trading desk. Morgan Stanley analysts also took a look at the space earlier this year and the bank already clears bitcoin futures for clients.

Peel's appointment comes amid a flurry of activity from investment banks around crypto. Goldman Sachs is reportedly planning to set up a bitcoin trading desk and JPMorgan recently appointed its first head of crypto-asset strategy. Investment banks are attracted by the eye-catching returns of bitcoin in 2017 and have begun to seriously assess cryptos as a potential new asset class despite poor price performance this year.

Industry insiders stress that key infrastructure such as institutional-grade digital asset custody solutions must be put in place before big banks can truly dive into the market.

SEE ALSO: JPMorgan has asked a 29-year-old highflier to draw up a cryptocurrency strategy

DON'T MISS: Morgan Stanley is jumping on the bitcoin futures bandwagon

NEXT UP: Morgan Stanley is looking to staff up its stock-research unit with crypto talent

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• Donald Trump's administration is ready to increase proposed tariffs on $200 billion of Chinese goods.
• Previously Trump had threatened 10% tariffs on these goods, but is expected to increase that to 25%.
• The move is thought to be a negotiating tactic aimed at gaining important concessions from the Chinese government.
• So far, tariffs on $34 billion of largely industrial goods have been imposed on China.

After a handful of quiet days in US President Donald Trump's trade war, it looks like a further escalation may be on its way following reports that another round of tariffs on China could be announced imminently.

According to Bloomberg, the Trump administration is considering levying tariffs of 25% on $200 billion of Chinese imports into the USA, in a move that would inevitably deepen tensions between the two nations. Previously Trump had threatened 10% tariffs on this tranche of imports.

Citing three sources familiar with the plans, Bloomberg said the US is making the threats about 25% tariffs as a means of getting the Chinese government to enter into negotiations to deescalate the conflict, which has so far seen tit-for-tat tariff impositions of tariffs, largely on industrial goods.

The increased tariff levels could be announced in a Federal Register notice in the next few days, one of Bloomberg's sources said. That could be as soon as Wednesday, they added.

As it stands, the US has placed 25% tariffs on around $34 billion of Chinese goods, and has just finished consulting on another set to be imposed on goods worth $16 billion. 

Goods already affected by Trump's tariffs against China include batteries, trains, and ball bearings, but they could extend to more consumer goods if further tariffs are imposed. You can see a full list of goods subject to tariffs here .

However, in addition to the the threat of 25% tariffs on $200 billion of goods, Trump has also explicitly signaled his readiness to "go to 500" — meaning that he is prepared to put tariffs on all $505 billion of goods coming from China to the USA. 

"I'm not doing this for politics — I'm doing this to do the right thing for our country," he told CNBC during the interview in which he made the threat. "We have been ripped off by China for a long time."

Reports of Trump's willingness to increase tariffs in China come as Chinese officials criticised the US for failing to fulfill the obligations it agreed upon in previous discussions over trade.

"China and the U.S. have had several rounds of consultations and reached important consensus, but regrettably the U.S. did not fulfill its obligations. Nor did it make concerted efforts with China," Wang Yi, the country's foreign minister said on Monday.

Things look better for Europe

As the Trump administration ratchets up its threats to China about rising tariffs, the worst of its conflict with the European Union over trade appears to be over, after last week Trump climbed down on imposing tariffs on EU autos imported to the US.

During a meeting in Washington DC last Wednesday, Trump and European Commission head Jean-Claude Juncker agreed to the beginnings of a deal that would end tensions between the two parties.

"This was a very big day for free and fair trade,"Trump said in a press conference after the pair's meeting.

In the meeting, the EU agreed to import more American soybeans and liquefied natural gas. Both sides will work to decrease industrial tariffs and adjust regulations to allow US medical devices to be traded more easily in European markets. 

SEE ALSO: 'It had to be very simple': The EU reportedly used colorful flash cards to explain trade policy to Trump

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Regulators like the SEC shouldn't be acting as gatekeepers to new technologies like bitcoin, according to Commissioner Hester Peirce.

Over the past 24 hours, the Bitcoin price has dropped by more than 7.5 percent from $8,150 to $7,500, as the crypto market lost $30 billion in one of the steepest drops in the past 30 days. Expected Decline, But Extreme Since July 29, Bitcoin recorded three consecutive sell candles on its one-day chart, demonstrating

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• Barclays says European stocks have big upside going forward, with the UK looking particularly attractive.
• That's partly due to the weaker British pound being a positive driver for the UK's benchmark share index, the FTSE 100.
• "The region has underperformed the global benchmark by 30% since 2012 and appears to be a consensus underweight," a Barclays team led by Emmanuel Cau said. "Relative to the rest of Europe, UK stocks have stabilised recently."

LONDON — With eight months to go until Britain officially leaves the European Union, there is still no sign of a deal being struck between the two sides. Progress is so slow that many are now speculating that no deal will be reached and the UK could drop out of the bloc with no fallback option of any sort.

That speculation, however, hasn't stopped Barclays from arguing that British stocks could make investors a killing going forward. In a note circulated to clients on Monday, Barclays said that it sees value across the whole of Europe, but particularly in the UK, for a number of reasons.

Updating its European equity strategy, a team from the bank led by Emmanuel Cau said investors in Europe should "hold their nerve" because the market still has further to rise, before specifically picking the UK as a buying opportunity.

Cau and his team, which includes analysts Sarah Wilkinson and Magesh Kumar Chandrasekaran, identified five reasons for their confidence in European stocks, which are as follows:

1. "Barclays forecasts global GDP growth to stay resilient at around a 4% pace and developed market activity to stabilize following a soft H1, despite the potential drag from trade."
2. "Earnings are healthy and elevated margins coupled with strong pricing power provide some cushion against higher input costs associated with tariffs," while results in the second quarter were "reassuring."
3. "P/E multiples have de-rated to mid-cycle levels and the yield gap still favours equities over bonds."
4. "Investors have de-risked, sentiment is cautious and Q4 seasonality is positive."
5. "Foreign exchange markets are "turning into a tailwind again for the Eurozone and UK."

Turning to the UK, Cau and his team identified the continued weakness of the British pound thanks to uncertainty over Brexit as a reason for buying UK-listed stocks. After a rollercoaster two years, the pound is around 11% lower against the dollar compared to its pre-referendum level, and is currently trading at $1.31.

"We are overweight UK equities within our Pan-European coverage universe," they wrote.

"The region has underperformed the global benchmark by 30% since 2012 and appears to be a consensus underweight. Relative to the rest of Europe, UK stocks have stabilised recently."

Part of Barclays' argument is couched in the fact that a weak pound tends to mean a strong UK stock market. That is because it is heavily skewed towards companies that don't actually make their money in the UK. This phenomenon was witnessed in the months after the referendum when UK stocks hit record highs numerous times as the pound continued to weaken.

The FTSE 100 index, for example, contains miners, oil firms, and pharmaceutical giants, with around two-thirds of all revenues for companies on the index derived from abroad, meaning a weak pound makes them more profitable.

"We advise going long UK stocks, but FX hedged. There is indeed a clear negative correlation between the relative performance of UK equities and GBP historically," Cau's note said.

"A weaker GBP is thus a positive for UK large caps’ earnings and could lead to an uptick in EPS revisions ahead," he continued, pointing to the chart below:

The pound's weakness is not over yet, Cau and his team say, citing the work of their colleagues in forex strategy. That means a possible further boost for UK stocks, making them an even more attractive investment.

"Our FX strategists expect further weakening in the pound over the coming months, partly due to their bullish view on the dollar but also because of the Brexit uncertainty," the note said.

"GBP has already fallen a lot since the EU referendum two years ago, but the current political deadlock does not inspire confidence as we approach the March 2019 deadline, in our view."

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The bear market continued on Wednesday morning as the top cryptocurrencies saw losses that varied from the high single digits to double digits in cases. Bitcoin was the main catalyst for this slump as it tanked down by 8% to the $7,545 level on Bitfinex at around 0800CEST. Although there were indications that the cryptocurrency

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Bitcoin has broken the key support level at $7,800 as the bears take back full control of the market during an exhaustive sell-off.

• Tesla has had a volatile several months as company issues such as a rapid cash burn have combined with public-relations problems stemming from CEO Elon Musk.
• The stock market has long been investors' preferred vessel for betting against Tesla, but data from IHS Markit suggest that skeptics have veered into other markets in their endless search for bearish wagers.
• Tesla reports second-quarter earnings on Wednesday.

Over the past several weeks, anyone with a working internet connection has been exposed to any number of wild Tesla headlines.

On the call following the company's disappointing first-quarter earnings report, CEO Elon Musk called an analyst's question "boneheaded." Weeks later, Musk insinuated that Linette Lopez — a Business Insider reporter who produced several Tesla scoops — was complicit in insider trading and may be providing nonpublic information. Then Musk lashed out at critics of his involvement in the rescue of a Thai soccer team.

And that's just a sampling of the public mishaps involving Musk. Beneath the surface at Tesla, the company is burning through cash at a torrid pace, and it recently pushed back the delivery windows for two of three versions of its Model 3 sedan.

All of these elements have combined to make Tesla a popular target for bearish investors of all types. And while the stock market has long been the preferred outlet for skeptics, they've recently added two other bearish bets to their repertoire: bonds and credit-default swaps.

With that established, here's a handy summary of the three preferred vessels for betting against Tesla:

The stock market

Equity short sellers have a long-standing contentious relationship with Musk, who has made a habit out of taunting his stock market opponents. But his efforts have been mostly in vain, as Tesla has remained the most shorted stock in the US equity market for the better part of the past 18 months.

Data from IHS Markit suggests short sellers are continuing to forge ahead, perhaps positioning ahead of Tesla's second-quarter earnings report on Wednesday. They've sold an additional 350,000 shares short over the past week, bringing the grand total to 35.4 million, according to the firm's data.

Here's a look at how the number of shares shorted has fluctuated this year. Note that while the measure looks fairly range-bound, Tesla has remained the most shorted stock in the US market by a considerable amount the entire time.

The bond market

Immediately after the initial issuance of Tesla's bond, expiring in 2025, credit shorts seized the opportunity to use another avenue to bet against the company. In short order, 8% — or $140 million — of the total issue size was being shorted. And that number has grown over time, now sitting at 14%, or $264 million.

And while the amount being shorted in the bond market pales in comparison with what is occurring in equities, IHS Markit suggests that shorting bonds carries greater symbolic significance.

"The negative sentiment regarding the firm's more than $8 billion pile of debt seems to be ratcheting up, and signals from the bond market are often viewed as having a greater significance given that it primarily consists of institutional investors," Sam Pierson, the director of securities finance at IHS Markit, wrote in a client note.

Credit-default swaps

Tesla credit-default swaps have been offered only since late June, and they've already seen a decent amount of interest (as evidenced by the recent spike in the purple line charted below).

For context, the right axis on the chart below represents the number of points offered up front. In more relatable terms, 18% (where the CDS started trading) translates to $180,000 being paid up front — plus another $10,000 a year — to insure $1 million of Tesla bonds.

While the CDS up-front points have come down slightly from a peak seen in the second week of July, the trajectory appears to be on an upward path.

Clearly more capital is required to transact in Tesla CDS, so it will never be as popular as the stock market when it comes to bearish bets. But the sheer fact that such a market exists and has been thriving shows just how much demand there is for anti-Tesla products of any type.

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• Elon Musk has an established penchant for fixing problems.
• But the ailing movie-ticketing app MoviePass is not one of them.
• The Tesla and SpaceX CEO jumped into a brief exchange on Twitter Tuesday evening after one use asked him if he could fix MoviePass.
• "No," Musk replied.

Elon Musk, the billionaire CEO of Tesla, SpaceX and the face of several other burgeoning Silicon Valley enterprises, has a demonstrated penchant for fixing problems.

The ailing movie-ticketing app MoviePass is not one of them, as noted in a brief exchange between Musk and a Twitter user on Tuesday.

When asked whether he could fix MoviePass, which has experienced a roller coaster of outages, and a cash shortage, Musk said no.

Tech journalist Lance Ulanoff chimed in: "Seriously, no one can fix MoviePass."

Here's how that exchange went down:

MoviePass has been on a wild ride of late, due in part to the company burning through massive amounts of cash. It temporarily ran out of money days ago, prompting service outages.

Parent company Helios and Matheson Analytics borrowed $5 million to get the service back online, and on Tuesday, it announced it would raise the monthly subscription price for MoviePass to $14.95.

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The annual Swell by Ripple conference invites global leaders from the policy, payments, and technology fields to come together and discuss how blockchain can be used to benefit society at large. According to a tweet from Ripple, former U.S. President Bill Clinton is set to keynote this year’s edition. Ripple noted in a news release

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• Tesla is bringing in non-manufacturing employees to help at its vehicle and battery production factories as it seeks to maintain a production rate of 5,000 Model 3 sedans each week, CNBC first reported.
• While Tesla has reassigned workers in the past to help boost production, the company is including a wider range of employees in the effort, including some from its energy business, according to CNBC.
• The move has reportedly put pressure on some of Tesla's other divisions, including vehicle service, where customers are reportedly experiencing longer wait times. 

Tesla is bringing in non-manufacturing employees to help at its vehicle and battery production factories as it seeks to maintain a production rate of 5,000 Model 3 sedans each week, CNBC first reported.

The publication reports that employees from the company's service centers and energy business are being flown to Fremont, California — where it makes cars — and Sparks, Nevada — where it makes batteries and powertrains — to keep production rates from flagging.

According to CNBC, the move has put pressure on some of Tesla's other divisions, including vehicle service, where customers are reportedly experiencing longer wait times. Employees reportedly feel pressure as well, taking new, temporary roles to avoid negative performance reviews.

A Tesla representative told Business Insider that temporary reassignments are voluntary and do not have a major effect on production. The representative also said that employees who are reassigned are placed in roles that match their skills, and those who do not opt for reassignments will not be punished with negative performance reviews. 

"This will likely happen less moving forward since, as we’ve previously announced, we’re in the process of smoothing out our deliveries through the quarter," the representative said.

While Tesla has reassigned workers in the past to help boost production, the company is including a wider range of employees in the effort, including some from its energy business, according to CNBC. The publication reports that some employees have been working temporary assignments away from their homes for weeks.

The effort comes as Tesla continues to ramp up production for the Model 3, the company's first mass-market vehicle. Tesla struggled to increase production after the vehicle was launched in July 2017 and twice missed its self-imposed deadline to produce 5,000 in a week, but hit that rate at the end of June. During the second quarter, the company made more Model 3s than in the prior three quarters combined, in part due to a new production line the company assembled in an outdoor, tent-like structure.

The Model 3 has also put a strain on Tesla's finances, as the company has posted significant losses in the quarters since it was launched. Musk has said the company will become profitable in the second half of this year, despite skepticism from some Wall Street analysts. In June, Tesla laid off around 9% of its employees.

Tesla will report its second-quarter earnings on Wednesday.

SEE ALSO: Tesla investors keep finding new ways to bet against the company ahead of the company's hotly anticipated earnings report

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