Tesla Motors (TSLA) Stock Rises Despite Disappointing Sales News

NEW YORK (TheStreet) -- Tesla Motors  (TSLA) sold about 1,600 Model S vehicles in the U.S. in March, a slight increase over the number of cars it sold in February.

Tesla Motors shares are up 2.9% to $213.59 in trading Tuesday.

Through the first three months of the year, Tesla sold 4,700 cars in the U.S., less than a 1% increase over the same period last year.

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Barclays  (BCS) analyst Brian Johnson believes that U.S. demand for the electric vehicle maker has peaked.

"We believe that Model S demand in the U.S. has plateaued, leaving international sales to pick up the growth slack. Within International, with seemingly soft European sales outside of Norway, Tesla will be dependent on strong Chinese demand," Johnson said in a report published Tuesday.

"While we expect strong initial interest from early adopters in China, we see challenges to broader luxury market adoption," he added.

Other analysts point to the car's high price point as a reason for stagnating sales.

The Model S has a retail starting price of over $70,000.

Despite these factors, there is market anticipation for the company's yet-to-be-debuted Model X sport utility vehicle. The Model X is expected to be available in 2015.

TheStreet Ratings team rates TESLA MOTORS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

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