Credit Suisse Thinks WSJ Report On Tesla's Sales Figures Is Misleading

Tesla Motors Inc's TSLA recent 26 percent decline in U.S. sales reflects a lack of supply rather than weak demand, an analyst said Monday.

Credit Suisse's Daniel Galves took issue with a report in The Wall Street Journal that he said misinterpreted routine sales data gathered by the trade publication WardsAuto.com.

Moreover, Galves said WSJ's report mischaracterized the launch of a Tesla leasing program Saturday as a "sales incentive" that effectively cuts the cars' price tag by 25 percent.

Tesla fell more than 5 percent Monday, trading recently at $222.46 per share.

The article noted that Tesla Chief Executive Elon Musk has said the company is supply constrained and that demand has not fallen off.

Galves said the company has diverted production away from the U.S. market to meet demand in Europe, where it launched sales a year ago, and in Asia where it launched in Spring 2015.

The Ward report cited by WSJ estimated that Tesla global deliveries were up 47 percent during the recent nine months, even as U.S. deliveries fell.

Musk, in a blog post Saturday, said the new leasing program, through U.S. Bank, "will lower monthly lease payments by as much as 25 percent on a new Model S."

"A price reduction like that could help boost sales in the U.S. as Tesla aims to keep its 35,000-unit sales target for 2014," according to WSJ's report.

But Galves said the lower price "isn't because Tesla is discounting the vehicle," but because the participating bank has a lower cost of funding and is "likely taking a less conservative view on residual value" on the autos.

In general, a higher residual value results in a lower monthly leasing cost.

Galves maintains a $235.24 target on Tesla along with an Outperform rating, although he believes the shares are likely to remain volatile.