It seems like despite what most analysts say about Tesla, it shows that they are actually losing shares this year because of the upcoming Tesla Model 3. Some have pointed out that people just do not buy the idea of the new electric car model and even compared it to the Model S.
Tesla Shares Drop Because of Investors Unconvinced Of Model 3?
Tesla Inc. has suffered a sudden drop in their shares just recently. The loss was bigger than they expected despite announcing that they are on track with the preparations and production of the up and coming Tesla Model 3. Tesla was expected to shed 1.3 percent in shares but it dived towards 4 percent on Thursday.
Apparently, the expenses allotted for the Model 3 has been hurting the sales of the Model S hence pulling down the figures for the company. Cowen analyst Jeff Osborne stated that investors have also walked away from the Model 3 when they thought it was too good to be true. He added that they were also disappointed when Tesla failed to provide more insights on the new electric car.
People Wants New Model S Instead Of The Model 3?
Tesla Inc. gained worldwide recognition after releasing its first electric car, the Tesla Roadster. It continued its good years with the production of the Model S, an electric luxury sedan they introduced in 2012. The Model S has been the bestselling electric car for two straight years and Tesla has sold at least 150,000 units of it.
The release of the Tesla Model 3, though hyped, isn’t actually making most of the company’s loyal clients intrigued because it was revealed that the new electric car is actually a downgraded version of the Model S. Elon Musk explained that the Tesla Model 3 is smaller, more affordable than the Model S, and has lesser features. People are asking for a new Model S instead because, despite the numerous updates on the said model, it basically remained the same.