NEW YORK (TheStreet) -- Shares of Tesla (TSLA - Get Report) are up in mid-day trading on Tuesday, after seeing a brief decline earlier in the day. CNBC auto reporter Phil LeBeau appeared on this afternoon's "Power Lunch" to discuss the misunderstanding that led the stock to slide.
"There was some chatter that was out there on the Internet, in fact CNBC at first originally tweeted out that Tesla was changing the delivery date for the new Model 3 [vehicle] to mid-2018. Because the website for Tesla said put in your order now if you want delivery in mid-2018," he said.
"The guidance for Tesla has not changed," LeBeau continued. "It still plans to deliver the Model 3 [in] late 2017. What has changed, is the website is saying if you order now, if you want to get your place in line, you're going to get that vehicle probably in mid-2018."
LeBeau pointed out the there is a backlog of almost 400,000 people that have placed orders for this vehicle. Basically what Tesla was saying was that if you order now, you'll get your Model 3 in late 2018. Some people read the company's website as Tesla changed its delivery guidance for those that have already ordered the car, but that isn't the case.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate TESLA MOTORS INC as a Sell with a ratings score of D+. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
You can view the full analysis from the report here: TSLA