(Reuters) - Tesla shares fell nearly 7% on Thursday on concern that the carmaker’s performance was consistently falling short of chief executive Elon Musk’s promises, while several analysts argued it could need more financing soon.
Four major houses - including Goldman Sachs and JP Morgan - cut their price targets by $5-$10 after the electric carmaker reported its worst ever quarterly loss and pushed back production targets for its Model 3 vehicle by three months.
Share price retreat
While shares in Silicon Valley star Musk’s venture were still up 50% for the year, reflecting faith in its positioning as a major future manufacturer, the company’s share price has now retreated 23% since mid-September.
“Tesla needs to slow down and more narrowly focus its vision and come up for a breath of fresh air,” Cowen and Co analysts said in a note. “Elon Musk needs to stop over promising and under delivering.”
Wall Street’s ratings on Tesla remain largely as they have been for most of this year. Only seven of 24 brokerages rate it a “sell”, up from six of 21 in May; eight houses still recommend buying the stock compared to seven six months ago.
Model 3 production problems
Most remained hopeful that Tesla can overcome the problems in the rampup of production of its more affordable Model 3 sedan that have dominated company statements in the past three months.