"We are not demand constrained. We are potentially production constrained," insists Elon Musk...

|By:, SA News Editor

"We are not demand constrained. We are potentially production constrained," insists Elon Musk during Tesla's (TSLA) Q4 call. Comments in the shareholder letter (.pdf) about a slower pace of Model S reservations in January and an elevated rate of cancellations, in response to Tesla's price hike, have some investors on edge. Tesla is counting on labor productivity gains - less overtime is mentioned - to hit its gross margin target. 25% of reservations are from outside North America. TSLA -5.9% AH. (live blogs: I, II) (Q4: I, II)