Tesla Motor (TSLA) is off 12% during the past month but Global Equity Research’s Trip Chowdhry doesn’t think anything is wrong with its business. He explains:
Bloomberg News Tesla’s Factory in Fremont is currently manufacturing about 1,200 to1,250 cars per week The shift to 85kWh version of Model S is very significant. 85kWh version of Model S is $10K more than 60kWh version of Model S This quarter, probably between between 3,000 to 4,000 P85D’s will be delivered, with an average ASP of $129K We estimate that the above will probably increase the ASP by about 5% to 8% Demand continues to outstrip Supply: Everyday probably between 170 to 200 of Model S are being booked Tesla’s Autopilot, Instant Torque, Safety, Designer Looks and Driving experience, are the primary reasons Tesla’s Demand is outstripping Supply Starting last week of December’2014, some stores may have P85D for test drives, with probably all the stores having P85D available for test drives by March’2015 Once TSLA starts giving the Test drives on P85D, the demand for P85D could just continue getting strong Every data point we have indicates that Demand is outstripping Supply Top Transportation Stocks To Watch Right Now
Of course, Tesla’s stock still has to cope with falling oil prices and its Norway problem.
Shares of Tesla Motors have dropped 0.3% to $217.52 at 2:38 p.m. today.
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