Tesla tumbling after confirming China deliveries delay
Feb. 05, 2020 9:29 AM ETTesla, Inc. (TSLA)TSLABy: Clark Schultz, SA News Editor286 Comments
- Tesla (NASDAQ:TSLA) confirms deliveries scheduled for early February in China will be delayed due to the coronavirus outbreak. Execs expects the production line to catch up once the outbreak gets better and the Shanghai factory is reopened, although that timetable is unclear.
- The EV automaker has been relatively immune from broad concerns over a reeling Chinese economy as investors and analysts focus on the long-term picture.
- Wedbush is out with a note this morning in that vein. "We are currently modeling ~20K deliveries in the key China region for the March quarter. In our opinion the current situation is more bark than bite as the aggressive trajectory of Giga 3 production and demand out of Shanghai look very strong out of the gates and the potential to hit 150k units/demand out of this region over the next year still remains intact," forecasts analyst Dan Ives.
- Shares of Tesla are down 6.08% premarket to $833.15.