Tesla is down 8% this morning as analysts digest the electric car maker’s Q1 earnings.
The company beat on earnings and revenue, but expects to be “marginally profitable” in Q2. It now expects to be free-cash-flow negative in 2014 as it spends on expansion.
One thing bears seem to be seizing on is the fact that a significant portion of recent demand came from Norway, according to Jacob Steinberg. Norway gives out generous subsidies to do things like purchase electric vehicles, so some wonder whether demand can be sustained where these subsidies aren’t available.
There are also concerns about the strength of its leasing program. Leases are only expected to account for approximately 200 deliveries out of 7,500 for Q1 due to lead times.
Meanwhile, Elon Musk-chaired SolarCity is up 8% after guiding higher.
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