http://www.bidnessetc.com/35569-why-the-hype-behind-tesla-motors-inc-may-be-exaggerated/High Demand Portrayal On Back Of Pulling Back Supply
Another major argument posted by Bulls is the accelerating demand that Tesla continuously observes for its EV. However, this might not actually be in reality, as Bidness Etc believes that it is more of an issue of sourcing rather than demand, leading to waiting times and portraying artificially high demand. The contrary stance turns in as the EV automaker is currently operating below its full capacity and past run-rates in order to keep the supply restricted and outlay an illusion of demand outpacing supply.
In November 2014, Mr. Musk said in a blog that the company’s assembly line in Fremont is currently assembling around 1,000 cars per week, and has more capacity if minor adjustments are made. At the same time, the company has stated that it does face issues related to the supply chain and has the capacity to manufacture around 1,300 vehicles per week. However, the recent quarter's earnings explain that Tesla manufactured 894 vehicles on average per week during the fourth quarter and expects to produce 910 vehicles per week in the current quarter.
According to analysts John Lovallo and John Murphy at the Bank of America Corp (NYSE:BAC), Tesla expects a 15% sequential improvement in its production through 4QFY15. The expected improvement would result in 4Q weekly production of 1,384 vehicles, which is comprehensively lower than its 4Q target of 2,000 vehicles per week. The stats clearly justify that Tesla is pulling back on production to artificially inflate demand numbers.