Tesla stock was down 4% on Monday after it was downgraded by Goldman Sachs on worries about its upcoming Model 3.
An analyst at Goldman Sachs gave Tesla, the maker of electric vehicles, a sell rating while lowering his target price to $185 from $190. Shares of Tesla fell $10.77 on the day.
A number of possible issues influenced the downgrade by the analyst, with many related to Tesla’s launch of its first mass market electric vehicle, its Model 3.
Presently, Tesla only sells two luxury vehicles, the Model X which is a crossover and the Model S a sedan.
The analysis of Tesla by Goldman Sachs included the potential for a delay in the launch of the new Model 3, currently planned for this summer, along with concerns that the car maker’s integration of SolarCity might prove to be a drain on financial resources.
The analyst wrote that some of Tesla’s suppliers expressed concern that final designs of the vehicle were not locked down, which could help to contribute to it missing production dates.
The analyst added in his rating change that he expects more pressure to be put on shares during the course of the year.
In addition, he added that the SolarCity acquisition, which is going through a transition of its business model, comes during a time when Tesla should have a singular focus on being a mass automobile maker.
Tesla stock was down 11% from its high in February of $280.
Elon Musk the Tesla CEO has been considered to have expansive targets. He hopes to make solar very popular, electric sedans the in thing, and is making inroads with rockets through his increased contracts with the government.
The growing Gigafactory located in Nevada, where plans are for manufacturing batteries for both cars and products for electricity storage could be joined by other factories worth billions.
In addition to leading Tesla as well as SpaceX, Musk is also on two business advisory councils of President Donald Trump, a move Musk defends by saying he wants to have dialog with the White House administration even though he disagreed with the recent ban on immigration.
Of the current projects by Musk, the launch of the Tesla’s Model 3 is arguably a critical crossroads for the automaker. Musk has projected productions of more than 500,000 for 2017, which is up from 80,000 units produced of Model X and S numbers.
This story was originally published by WKRB News (https://www.wkrb13.com) and is the sole property of WKRB News. If you are reading this article on another website, that means this article was illegally copied and re-published to this website in violation of U.S. and International copyright law. You can view the original version of this story at https://www.wkrb13.com/business/1998995/tesla-stock-falls-on-possible-delay-of-model-3.html