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Tesla has gone from one iteration of hell to another, one particularly bearish analyst told Markets Insider this week.
The electric vehicle manufacturer is now in a “demand hell.” That’s after Tesla went through what CEO Elon Musk dubbed “production hell” and “delivery logistics hell.”
A handful of Wall Street analysts have sounded the alarm over demand as a core problem for Tesla now, and one that’s more fundamental than production and means of delivery.
Tesla will on Thursday unveil its Model Y SUV, a car which could spur a new wave of demand.
Watch Tesla trade in real-time.

How many versions of hell can one car go through?

Tesla has gone through what CEO Elon Musk dubbed “production hell” and “delivery logistics hell” over the last two years with the Model 3. Now, there’s a new version of hell on the lips of at least one Wall Street analyst: “demand hell.”

Gordon Johnson, an analyst at New York-based Vertical Group, told Markets Insider by phone on Wednesday that vehicle demand is a major issue for Tesla right now, as competition heats up across the electric vehicle market once dominated by Tesla alone.

“Tesla has a demand problem,” Johnson said in a phone interview on Wednesday. “The demand problem is the Model 3 is not a mass-market car. It’s a luxury car.”

“Elon Musk has talked about production hell, delivery hell. I think what they’re in now is demand hell,” Johnson said, referring to disappointing Model 3 sales and waning demand in the US and China alike. In late February, Tesla unveiled its long-awaited $35,000 Model 3.

Demand appears to have been at least partially driven by the US federal tax credit for electric vehicles. Goldman noted the price after the $7,500 credit would have …read more

Source:: Business Insider

      

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