Brokerage Wunderlich Securities downgraded Tesla to “sell” from “buy.” The reason: Tesla has downshifted its production plans, reports Reuters.
“While initially saying that it would produce and sell 1,000 cars in the third quarter, Tesla now says it will certainly be 500 cars,” Wunderlich analyst, Theodore O’Neill, said in a research note.
Tesla said that it plans to deliver 5,000 Model S cars by year end.
“While the company is sticking to its 5,000 unit forecast for 2012, how it gets there becomes a second issue for it to resolve,” says a diplomatic O’Neill.
Reservations for the electric car are said to be more than 10,000.
Note: “Sell” recommendations are not frequently given, usually they are couched in “hold” or “accumulate.”