Tesla’s stock price took a hit Monday amid growing concerns on Wall Street over the startup’s ability to stick to its timeline for the release of its forthcoming Model 3.
Goldman Sachs analyst David Tamberrino lowered his target price for Tesla shares to $185 and gave the stock a “sell” rating, citing its acquisition of SolarCity and potential delays to the Model 3’s launch, according to USA TODAY. Following Tamberrino’s analysis, Tesla’s stock fell 4 percent, closing Monday at $246.23.
In addition to suppliers reportedly claiming Tesla hasn’t yet finalized the design for the mass-market electric vehicle, Tamberrino said its release could get pushed back because the company is trying to do too many things at once.
“We expect to see pressure on shares as we progress through the year,” Tamberrino said, via USA TODAY. “Further, the acquisition of SolarCity — which is undergoing its own business model transition — comes at a time when we believe Tesla should be singularly focused on becoming a mass automobile manufacturer.”
Tesla currently sells two premium cars, the Model S and Model X, and produces roughly 80,000 vehicles per year. But Elon Musk projects its output will ramp up to 500,000 units annually after production for the Model 3 begins.
Musk has a history of setting ambitious goals for the EV manufacturer, and, because of that, it has a track record for delaying product releases. However, both Tesla and its CEO have a cult-like following that isn’t easily deterred by setbacks or price increases.
As it stands, Tesla is set to begin deliveries of the Model 3 in late 2017.
Thumbnail photo via Tesla