Investors have been paying close attention to how profitable Tesla’s cars are, particularly the Model 3 sedan. The federal tax credit on every Tesla vehicle sold was cut in half to $3,750 at the beginning of the year, after Tesla sold its allotted 200,000 units that qualified for the full credit.
“That 360,000 to 400,000 vehicles is within the band of what the street was expecting, and I think there were fears that would be significantly worse given what we saw in North America with the EV tax credit,” Wedbush analyst Dan Ives told CNBC.
Jessica Caldwell, Edmunds’ executive director of industry analysis, sees a tough year ahead for Tesla.
“Things really aren’t going to get any better for Tesla in the U.S. than they did at the end of 2018,” she told CNBC on Wednesday. “Turning a profit, creatively addressing production challenges and getting the Model 3 to the masses were huge milestones, but keeping up this momentum is going to be virtually impossible.”
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