Tesla Slashes Model S Output

Bertel Schmitt
by Bertel Schmitt

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.”

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Chris724 Chris724 on Jul 18, 2012

    Since when is it bad for demand to outpace supply? Tesla overestimated their ability to ramp up production, but the product itself seems to be rather good. I think Elon Musk knows a thing or two about business. He's not a shyster.

  • Mrhappypants Mrhappypants on Jul 18, 2012

    Circling the drain for good reason. Daring is one thing; stupid is another. Hint: Be the Henry Ford of electric cars, not the John Delorean.

  • Darkhorse Darkhorse on Jul 19, 2012

    What Tesla needs to build in the VW Type 1 of EVs and sell it for under $20,000.

    • SCE to AUX SCE to AUX on Jul 19, 2012

      I think that's what Mitsubishi's i-MiEV is supposed to be, but it's terrible.

  • JohnTheDriver JohnTheDriver on Jul 20, 2012

    Sorry to break it to ya TTACs "best and brightest" but Tesla is here to stay. Their Toyota technology sharing contract keeps them in the drivers seat for years to come. I wonder if Musk is intentionally limiting the supply in order to keep demand high and thus his price premium (think Harley Davidson.) He's a bright guy this Elon ;-}

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