Tesla Stock Slide May Halt With Model 3 Unveil, Barclays Saysby and
New model's March showing seen drawing attention to company
Electric-car maker's stock fell 38% this year through Monday
Tesla Motors Inc. could re-ignite investor interest next month if the company shows off its mass-market Model 3 car as expected, a Barclays Plc analyst said.
Investors and analysts are expecting Tesla to provide more details about the Model 3 when the electric-car maker reports fourth-quarter earnings Wednesday. Brian Johnson, the Barclays analyst, said in a research note Tuesday that he expects Tesla to reiterate that production of the car will start in late 2017 and show a concept car in March that proves the company is progressing with development of its lower-priced model.
New details about the Model 3 might generate enough hype on social media to get investors interested in the stock again, Johnson said. If Tesla Chief Executive Officer Elon Musk shows a concept car, that may spark a rebound in a stock that was off 38 percent this year through Monday.
The unveiling is likely to be in late March “and there won’t be a lot of details revealed, but we do expect a concept car, not just photos or drawings,” Johnson said in the note. “We expect interest in Tesla to be reinvigorated amidst a wave of social media attention.”
The automaker confirmed that the Model 3 will be priced at $35,000 before state and federal tax incentives, meaning the car could cost $25,000.
Tesla gained 0.7 percent to $149.09 at 2:17 p.m. in New York after rising as much as 8 percent, the most intraday since Nov. 4. The shares on Monday reached a a two-year low.
Investors have been bearish about the stock because of concern about whether the company can efficiently produce enough of its new Model X sport utility vehicle. Musk is expected to give an update on how many cars Tesla expects to deliver in 2016 during Wednesday’s earnings report.