Thursday, December 28, 2017

KeyBanc cuts Tesla's production estimate

Tesla shares lost around 2 percent  and closed at $ 312 in yesterday's trading after KeyBanc analysts slashed their fourth-quarter estimates for Model 3 deliveries to about 5,000 from 15,000.

The bank's analysts expects the numbers for the mass-market sedan that was launched in July to be unveiled early next week.

While it is likely to be a few quarters before the company’s true Model 3 gross margin judgment day arrives, they remain sector weight as they think the [Model 3] margin ramp will disappoint and investors will have to acknowledge no [Model S and Model X] growth at some point, which is not reflected in the shares.

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