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Tesla demand waning as customers rather go elsewhere than wait for new vehicles, says analyst

Published: 15:08 05 Dec 2017 GMT

Tesla
Tesla's new Roadster won't be available until 2020

With a long wait for new Tesla Inc. (NASDAQ:TSLA) models, customers are beginning to go elsewhere, according to investment research firm Cascend Securities.

Cascend downgraded its rating on the stock to ‘sell’ from ‘hold’ with analyst Eric Ross saying those who have not already pre-ordered won’t get any of the company's new vehicles until 2019.

"Additionally, all the known issues of capital burn/raises, Model 3 production issues, and increased competition," Ross wrote in a note.

“We have ‘buy’ ratings on Ford Motor Company (NYSE:F) and General Motors (NYSE:GM. If you want risk, buy CME bitcoin futures on Sunday." 

Ross added that competition in the electric vehicle market is growing with all of the major carmakers now in the sector.

In August, chief executive Elon Musk said about 63,000 people had cancelled their orders for the Model 3.

But Musk shrugged off the cancellations, noting that the company has been averaging about 1,800 new Model 3 reservations per day since the first 30 cars were handed over to Tesla employees in July.

“It’s like if you’re a restaurant and you’re serving hamburgers, and there’s an hour-and-a-half wait for a hamburger, do you really want to encourage people to come buy more hamburgers?,” Musk said.

READ: Tesla CEO Elon Musk says demand for Model 3 is like serving hungry customers hamburgers

Meanwhile, the company’s electric semi truck won’t be available until 2019 and production for the new Roadster won’t start until 2020.

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