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Technology Stocks : Game Changers and Market Movers

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From: Paul H. Christiansen11/17/2014 3:49:44 PM
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The Mystery of 12,000 Missing Teslas: Overseas Boom or Waning U.S. Demand?

Tesla Motors ( TSLA) is slowly ramping up production. Demand for its electric sedans allegedly remains high. Yet far fewer of the vehicles are making their way onto U.S. roads this year.

In the first nine months of 2014, the number of U.S. registrations of Tesla vehicles fell by one-third to 9,331, according to an analysis of public records by Hedges & Co., an Ohio-based market-research firm. In the same period, however, Tesla said it delivered 21,821 cars—a 40 percent increase from a year earlier. What happened to the other 12,490 cars?

One possible explanation is that Tesla is shipping more cars abroad. Here’s how the dynamic pans out: Tesla sells its cars directly and basically makes them to order, so there should be little lag between delivery, sale, and registration of any given Model S. All those Teslas without U.S. registrations—almost 60 percent of deliveries so far this year—could have been shipped abroad.

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The Mystery of 12,000 Missing Teslas: Overseas Boom or Waning U.S. Demand?
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