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Tesla supplier orders not canceled, only adjusted, says Baird analyst

Published 10/27/2017, 02:59 PM
© Reuters.  Tesla supplier orders not canceled, only adjusted, says Baird analyst
TSLA
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  • Tesla (TSLA -2.1%) trims some of its earlier losses that followed a report that orders with a key parts supplier were cut by 40% and a subsequent downgrade by Evercore ISI.
  • Supplier Hota Industrial later said the orders were not canceled but were adjusted to account for bottlenecks in TSLA's production schedule, according to Baird's Ben Kallo.
  • The analyst now sees a buying opportunity in TSLA as bad news largely has been priced into the stock; Kallo's earlier Q3 preview indicated shares "could come under pressure given production delays, which will impact margins given lower Model 3 absorption."


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