Tesla Stock Downgraded: Are Analysts Underestimating the Model 3?

According to a CNBC report, analyst Rajvindra Gill at Needham expects the Model 3 cancellation rate to have doubled in less than a year. Before Tesla reached its Model 3 production milestone of 5,000 units per week at the end of the second quarter, Morgan Stanley analyst Adam Jonas was not expecting Tesla to achieve a rate of 5,000 units per week until the first half of 2019. In fact, Tesla’s efforts to exponentially boost Model 3 production might have given confidence to Model 3 reservation holders who have already waited for many quarters to stick to their reservations a little longer.