Tesla (TSLA) Shares Slip After Model 3 Production Announcement, Short Interest Rises

Tesla Inc (NASDAQ:TSLA) shares fell as much as 3.6 percent on Thursday, but have since rebounded somewhat, setting the company up to lose nearly $1.9 billion in market value after it pushed back a production target for its much-anticipated Model 3 sedan yet again.

The electric-car maker said it delivered 1,550 Model 3 sedans in the fourth quarter, a bit more than half of the 2,917 that Wall Street analysts were expecting. Tesla produced 2,425 sedans during the period.

Over all, Tesla had the most productive year in its history, delivering 101,312 vehicles, a 33 percent increase from 2016.

That number fell well short of Elon Musk’s promise of producing 20,000 Model 3 sedans per month beginning in December. “Looks like we can reach 20,000 Model 3 cars per month in Dec,” Musk tweeted back in January.

Short interest in Tesla (NASDAQ:TSLA) has climbed by $6 million, or 22%, in the three months leading up to announcement amid mounting concerns over the delivery numbers and as traders use recent high flyers hedge against the broader market.

The median price target on the stock is $310 and eight of 25 brokerages covering the stock rate it “buy” or higher. Eight have a “hold” rating and the rest a “sell” or lower.

About Tesla (NASDAQ:TSLA)

Tesla, Inc., formerly Tesla Motors, Inc., designs, develops, manufactures and sells fully electric vehicles, and energy storage systems, as well as installs, operates and maintains solar and energy storage products. The Company operates through two segments: Automotive, and Energy generation and storage. The Automotive segment includes the design, development, manufacturing, and sales of electric vehicles. The Energy generation and storage segment includes the design, manufacture, installation, and sale or lease of stationary energy storage products and solar energy systems to residential and commercial customers, or sale of electricity generated by its solar energy systems to customers. The Company produces and distributes two fully electric vehicles, the Model S sedan and the Model X sport utility vehicle (SUV). It also offers Model 3, a sedan designed for the mass market. It develops energy storage products for use in homes, commercial facilities and utility sites.

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