Tesla falls after report raises questions about demand

Bloomberg News

Tesla Motors Inc. fell the most in two weeks after a report that the company is selling fewer of its electric cars and offering new incentives.

Tesla dropped 4 percent to $225.72 at 1:15 p.m. New York time after falling as much as 5.5 percent for the biggest intraday decline since Oct. 13. The shares had gained 56 percent this year through Oct. 24, compared with a 6 percent increase by the Russell 1000 Index.

The Wall Street Journal sent a headline saying Tesla sales fell 26 percent, citing WardsAuto.com. A later report clarified that the decline related only to U.S. sales. Tesla began shipping vehicles to markets in Europe and Asia this year, reducing availability of the cars in the U.S.

The Journal also said that Tesla is offering "two new sales incentives," referring to the company's new lease offer, which Chief Executive Officer Elon Musk wrote about in a company blog post Oct. 25. He said that a new lease offer through U.S. Bancorp will lower monthly payments by 25 percent. Musk also wrote that dissatisfied customers can return their leased car within 90 days and have their obligation waived.