Tesla Motors Inc (TSLA): Norway Sales Disappoint

tesla motorsIn the past week (from close of trading Wednesday, June 25, to close of trading Wednesday, July 2, Tesla Motors Inc (NASDAQ:TSLA) dropped 3.15 percent.

Most of that drop took place yesterday (July 2) when news of a drop in sales in Norway drove the stock price down 4.29 percent.

The stock price continued to fall when the market opened this morning (July 3), but by 10 a.m., the price turned around and started to rise.

The 3.15 percent drop for the week ending Wednesday put TSLA behind the market.

All three major indexes rose during that time period — the Dow by 0.64 percent, Nasdaq by 1.78 percent, and the S&P 500 by 0.77 percent.

The news that alarmed the market yesterday was that Tesla sold 536 Model S cars in Norway in June, which was down from a high of 1,493 cars that Tesla sold there in March.

Another way of looking at the sales data is that Tesla sold 47.4 percent fewer cars in the second quarter of 2014 than it did in the the first quarter.

The news might not be all bad, though, as the 536 cars sold was actually an increase over the 373 cars Tesla sold in Norway in May.

Also, increasing sales in China might offset any loss of sales in Norway.

Other news yesterday that may have spooked investors was that the Korean company LG Chem (KRX: 051910) may be building a battery plant in China, which could compete with Tesla, which also plans to open its own battery plant there.

In better news for Tesla, a research company that compiles quality ratings for vehicles said that Tesla’s model S had a higher score than any other vehicle for perceived quality.

Tesla also had good news in its ongoing struggle to fend off attempts by auto dealers to ban Tesla’s direct-to-consumer sales model.

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