Proactive Investors - Run By Investors For Investors

Don’t worry about Tesla’s Model 3s left in inventory, says Baird

Baird analyst Ben Kallo noted that the 3,300 Model 3 cars reportedly remaining in inventory accounts for less than one week of production
Tesla car and a charger
Demand for the Model 3 remains strong, according to the analyst

Tesla Inc (NASDAQ:TSLA) ended its quarter Sunday with 3,300 Model 3 cars left in its inventory, according to an Electrek report, but Baird analysts said demand remands strong.

The analysts said the inventory level was “natural” as Tesla ramped up production to fill orders before the federal tax credit ran out in the new year and called it a “one-time event.”

The clock was ticking for customers looking to score the US$7,500 federal tax credit granted to those who buy new electric vehicles.

As per the credit guidelines, Tesla customers had to have their cars delivered by December 31.

READ: Tesla appoints Oracle founder and Walgreens exec as independent directors as part of SEC reshuffle deal

The number of vehicles, although it may seem high, accounts for less than one week of production and less than about 6% of Baird’s fourth-quarter delivery estimate.

The Electrek report also noted that the number of vehicles wasn’t that high and did not express any concern about demand for the Model 3.

“We continue to believe Model 3 demand remains strong, particularly as the company has not begun international shipments or introduced leasing options, and are buyers on any weakness,” wrote analyst Ben Kallo.

The analyst highlighted “substantial” demand overseas, specifically in Europe and China, and noted that leasing and international deliveries could tap into incremental demand.

Shares of Tesla dipped more than 2% to US$325 in Wednesday pre-market trading.

 

Contact Lenore Fedow at [email protected]

Follow her on Twitter@LenoreMariee

 

 

View full TSLA profile View Profile

Tesla Inc Timeline

Related Articles

tubes
November 14 2018
The company is a leading global producer of Halloysite clay and owns the only deposit in the western hemisphere big enough for large-scale commercial production
1544205739_Playground.jpg
December 07 2018
The group is also now launching new product lines, including trampoline parks, which complement its soft play parks
Copyright © Proactiveinvestors.com, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use