Tesla Just Took Step Forward In Model 3 Launch, Chowdhry Says
Tesla Motors Inc (NASDAQ: TSLA) announced that it will phase out the 85-kWh Model S battery option. Model S buyers have 4 models to chose from: Model S 70 or 70D, Model S 90D or the P90D.
According to Trip Chowdhry of Global Equities Research, Tesla investors should consider the company's move to discontinue a battery as a "positive development." The analyst suggested that this marks a "step forward in preparation" for the launch of the Model 3 vehicle.
Chowdhry continued that Tesla is now creating a "degree of separation" between the Model 3 and Model S. He added the Model 3's battery could be a 60kWh or less battery pack while the Model S could be a 70kWh or more battery pack.
Finally, Chowdhry argued that by discontinuing the 85S and 85D model S lines in favor of the the Model 90S and 90D, Tesla "validates the operational efficiencies" that the company has been able to "continuously achieve."
Shares of Tesla were trading higher by around 1 percent at $149.19 late Tuesday afternoon after hitting a 52-week low of $141.05 in Monday's trading session.
Latest Ratings for TSLA
|Feb 2017||RBC Capital||Maintains||Sector Perform||Sector Perform|
|Jan 2017||Morgan Stanley||Upgrades||Equal-Weight||Overweight|
|Jan 2017||Guggenheim||Initiates Coverage On||Buy|
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