“Steady demand” for Tesla Inc.’s
Model 3 in Europe is likely to help weakness in China, analysts at Wedbush said in a note Thursday. Norway continues to be one of the “epicenters of demand” for Tesla on the continent, along the Netherlands and Germany, the analysts, led by Dan Ives, said. Overall, demand in Europe is a “positive development” for Tesla but one that doesn’t change broader demand and profitability concerns about the company, the analysts said. Model S and Model X demand continues to be “sluggish” and will weigh on Tesla’s margins. Hitting the goal of selling between 360,000 and 400,000 vehicles this year will be a “Herculean-like feat,” they said. Wedbush kept the equivalent of a hold on Tesla stock and its $220 price target, close to what the stock is trading on Wednesday. Tesla shares have lost 34% this year, which contrasts with gains of 16% for the S&P 500 index.
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