Tesla denies Model 3 refunds outpacing deposits

Tesla Inc rejected on Thursday that refunds of reservations of its Model 3 sedan were now outpacing, replying to a report earlier in the day by a Wall Street brokerage mentioning channel checks on the electric automaker.

“The notion that Model 3 cancellations are outpacing orders is unequivocally false,” a Tesla spokesperson informed.

Needham & Co analyst Rajvindra Gill wrote in a client note previously during the same day: “In August ‘17, TSLA cited that the refund rate was 12 percent. Almost a year later, we believe the refund rate has doubled and outpaced deposits.”

Shares in Tesla dropped as much as 3 percent in early deals on Thursday before recovering to trade only 0.3 percent lower by 2.05 p.m. EDT.