Tesla’s sales raise concerns for Model 3

sales

Several analysts have been questioning whether customer demand for Tesla’s two electric vehicles is decreasing because of the company producing its cheaper vehicle, Model 3.

After sales expanded by 69% this year because of its Model 3 sedan, the US automaker’s shares fell to the lowest point this month by 5%.

According to Fox News, Tesla reported on Monday that sales of Model S and Model X cars were lower than expected, with battery pack issues raising fear.

‘Severe production shortfall’

Toni Sacconaghi, an analyst for the brokers firm Sanford C Bernstien asked: “If production was so poor in April and May for its 100 kwh battery, why didn’t Tesla executives discuss the issue on the company’s Q1 earnings call on 3 May?”

Sacconaghi also wondered why investors didn’t find out about the “severe production shortfall” of battery packs, which Tesla said caused production to average about 40% below demand, and said that Tesla’s sales report “raised more questions than answers”.

Written by Leah Alger

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