Tesla shares down 5 percent after Model 3 launch, sales shake-up

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Tesla shares down 5 percent after Model 3 launch, sales shake-up
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Tesla shares down 5 percent after Model 3 launch, sales shake-up $TSLA

- Wall Street reacted nervously on Friday to Tesla Inc’s move to shut its network of showrooms and launch a long-awaited cheaper version of its Model 3 sedan, with its shares falling 5 percent and most analysts expressing concern over the company’s long-term margins.

“Taken in conjunction with the introduction of the $35k Model 3, we view this as confirmation that demand for Tesla vehicles has softened,” RBC Capital Markets analyst Joseph Spak wrote in a client note. Since unveiling the Model 3 in 2016, Musk has been promising a $35,000 version. A lower-priced Model 3 is seen critical to its long-term viability as it needs to reach more customers who can afford the vehicles to offset slowing sales of costlier sedans.

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