“Tesla stock soared for a few months starting in February following news that pre-orders for the electric-car maker’s Model 3, with a price tag of $35,000, were approaching 400,000 units. However, the rally has started to fade and I think the stock’s time to shine is over.

The Model 3 was Tesla’s play for an “affordable” electric car but it appears to be affordable for everyone EXCEPT Tesla.

Tesla loses more than $4,000 on each of its high-end Model S electric sedans; and that model’s cost is between $70 and $108k. With margins like that, one has to assume a $35k Model 3 can’t be the answer to solving Tesla’s red ink.

Tesla’s income statement reveals the company is hemorrhaging cash at a robust clip….”

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