If Tesla cuts production in China, it won’t be due to competition, says Piper

Piper Sandler analyst Alexander Potter noted that Bloomberg reported that Tesla will cut Model Y production in China by 20% in December compared to November, citing sources, and that Tesla denies this report. Regardless of the denial, China-related anxiety is clearly rising among Tesla shareholders, contends Potter, who adds that if Tesla does eventually decide to cut production he thinks it will be due to macro headwinds and a new factory in Berlin and "NOT" competition from Chinese peers. Potter maintains an Overweight rating and $340 price target on Tesla shares, which are down $13.23, or 7%, to $181.63 in afternoon trading.