Tesla stock falls as concerns about demand for Model 3 arise
Shares of Tesla are down 50 percent since September, with concerns about Model 3 demand in the U.S. at the forefront.
Daniel Ives of WedBush said in a client note Monday that so far there seems to be mixed signals on Model 3 demand, which could make it harder for Tesla to achieve a profit in its third and fourth quarters and the future.
Tesla should also press pause on expanding into insurance, robotaxis and other projects, he added.
“The company instead should be laser-focused on shoring up core demand for Model 3 and simplifying its business model and expense structure,” Ives said.
Tesla Inc.’s stock dropped 4.4 percent in Monday midday trading to $201.83. The stock fell below $200 earlier in the session, its lowest point since late 2016.