Brokerage Wunderlich Securities has downgraded Tesla stock from ‘buy’ to ‘sell’ thanks to the companies slashing of Model S output.
Originally, Tesla had intentions to produce and sell 1,000 of its Model S in the third quarter of this year, but things have changed. “While initially saying that it would produce and sell 1,000 cars in the third quarter, Tesla now says it will certainly be 500 cars,” said Wunderlich analyst, Theodore O’Neill.
By the end of the year, Tesla still claims to be aiming at 5,000 Model S sales, but with these recent developments, that seems unlikely.
Pricing for the Model S starts at $49,900 after a federal tax rebate. The top Signature package will retail for $69,900 after tax incentives and will deliver a 300 mile range plus a 0-60 time of just 4.4 seconds.