Huawei CEO Ren Zhengfei said in an interview with CNBC the company's business is still strong in China.Technologyread more
The Fed is not likely to make a move on interest rates when it meets this week, but it should clear the way for a rate cut later in the summer.Market Insiderread more
U.S. President Donald Trump officially kicked off his reelection campaign Tuesday at a Florida rally where he exhorted thousands of rollicking supporters to keep advancing his...Politicsread more
BlackRock's global fixed income chief says the European Central Bank just turned up the pressure on the Federal Reserve to more toward easier policy.Market Insiderread more
Global watchdogs and top U.S. Congress members are calling for oversight of a digital asset being launched by Facebook and roughly two dozen other stakeholders.Marketsread more
Facebook's new cryptocurrency project, titled Libra and backed by the likes of Visa and Booking Holdings, is being widely embraced by market watchers.Trading Nationread more
Mortgage applications were down 3.4% from the previous week, but still up 31.6% from a year earlier, according to the Mortgage Bankers Association.Real Estateread more
Trump's remarks came a day before the Fed was set to announce its next decision on interest rates.Politicsread more
Sen. Josh Hawley, a well-known tech critic, introduced legislation on Wednesday that would remove the immunity big technology companies receive for user-posted content under...Technologyread more
Zuckerberg fell out of Glassdoor's top 20 CEO ranking for the first time, although his employee approval rate remains high.Technologyread more
Ford announced that the 2020 Mustang Shelby GT500 has 760 horsepower and 625 lb.-ft of torque, which it says makes this the most powerful street-legal Ford. The car is not yet...Autosread more
(Adds analyst, CEO comments; Updates shares)
June 12 (Reuters) - Tesla Inc shares were down 2% on Wednesday, as analysts remained divided on the electric-carmaker's chances of meeting delivery and production targets in the months ahead, despite Chief Executive Officer Elon Musk's reassurances at an annual shareholder meeting.
Musk told shareholders on Tuesday that Tesla was on track to hit its volume production goal for the year, indicating the demand for its cars remains strong.
"We made as many cars last year as we had in our entire history. And this year, it's going to be pretty similar at least sort of 60% to 80% growth of the total vehicle fleet, maybe more than that, " Musk said.
Analysts at Cowen & Co, however, questioned the 47-year old billionaire's comment, saying "Musk claims that sales have far exceeded production, but the data doesn't suggest".
"Basic microeconomic theory would suggest that goods or services that don't have a demand problem, don't see their prices lowered by half a dozen times in 4-5 months."
The company has lowered prices for its vehicles multiple times in the past few months to boost sales of its models.
In the first quarter ended March, Tesla reported a 31% fall in deliveries, sparking concerns about the company's ability to make profits and meet its delivery targets while it grapples with issues related to cash flow and manufacturing.
However, Baird analyst Ben Kallo, rated four out of five stars for his accuracy on estimates for Tesla, believes "bear arguments will be disproven in the coming weeks and months".
He also expects the carmaker, which witnessed steady demand over the past few weeks, to be cash flow positive in the second quarter.
At least eight Wall Street brokerages cut their price target for Tesla in May to an average of $280.31 a share, according to Refinitiv data. Shares of the company have fallen by around $120 in 2019 and were trading at around $222 before the bell on Wednesday.
Of the 31 analysts who cover the stock, only 12 now recommend buying Tesla shares, while another 12 have a "sell" rating and the rest have "hold".
"There is clearly a somewhat healthy level of demand, but maybe not as aggressive as what Tesla management would like. Maybe galloping growth, not blistering growth," said Roth Capital analyst Craig Irwin.
Irwin rates the stock "buy", with a price target of $238. (Reporting by Tanvi Mehta and Vibhuti Sharma in Bengaluru; Editing by Arun Koyyur and Shinjini Ganguli)