Demand for Tesla’s Model S and SUV equivalent has peaked, according to analysts at Goldman Sachs, even as the automaker contends demand for its vehicles is outstripping supply.
Tesla said the company delivered 22,000 vehicles in the second quarter, fewer than many analysts expected. Deliveries slowed from a record of 25,000 cars in the first quarter, partially because of a lack of battery packs. Batteries for electric vehicles are composed of rare materials that are not easily mined.
“We believe the excess production above deliveries … point to a plateauing of demand for its current products,” David Tamberrino, a Goldman Sachs analysts, wrote in a note released Wednesday. He was referring to production on Tesla’s Model S and Model X.
Goldman Sachs lowered its six-month target price on Tesla to $180 from $190, indicating a nearly 50 percent decline from Monday’s closing price of $352.62. Tesla shares were down by about 1.5% in premarket trading on Wednesday.
Tamberrino’s position comes as Tesla begins producing the Model 3. The vehicle “passed all regulatory requirements for production two weeks ahead of schedule,” Musk told his Twitter followers. He added that the first model will be completed Friday, bringing an end to several months of buildup.
Musk also tweeted that production on the highly touted vehicle will expand from 100 cars in August to 1,500 in September, and plateau to 20,000 per month in December. He announced a “handover party” will be held July 28 for the first 30 buyers of the Model 3, most of whom have made $1,000 deposits on the company’s first non-luxury vehicle.
Tesla raised its market capitalization to $51 billion in April, a number that is valued at about $1.7 billion more than GM. The two companies have wrestled for supremacy. Musk’s chronic inability to deliver products on deadline and his willingness to get distracted has some analysts spooked.
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