After rising above and beyond for most of this year, the stocks of electric vehicle producer Tesla (NASDAQ:$TSLA) have seen quite a fall for the past couple days. On Wednesday, July 5, 2017, the company’s stock fell by 6.1% after David Tamberrino, an analyst from Goldman Sachs (NYSE:$GS), provided strong arguments for his bearish view of Tesla’s stock. As of 4 P.M. on July 5, 2017, the stock has gone down by 7.24% after it opened at $346.79 this morning.
Tamberrino has expressed concerns over Tesla’s deliveries of its Model S and Model X vehicles. This is largely due to Tesla’s second quarter delivery reports. Although deliveries went up by 53% year over year, it also went down by 12% sequentially. While the electric car company has projected higher deliveries for the second half of 2017 compared to the first half, the growth may not be significant.
Besides concerns over Tesla’s deliveries, Tamberrino also believe that Tesla’s profit margins will not meet previous expectations despite the company expecting more deliveries of the Model S and Model X. Additionally, Tamberrino thinks that the production of the highly-anticipated Model 3 may be slower than previously projected. As a result of these observations and beliefs, Tamberrino has made Tesla’s price target $180 — almost half the number that the stock closed with on Monday.
While investors shouldn’t rely solely on the opinions of analysts, Tamberrino did remind investors of an important concern — the deliveries of Tesla’s Model S and Model X vehicles. This consideration has no doubt contributed somewhat to the fall of the stock today. As well, due to the fact that the success of Tesla’s stock has been largely thanks to the anticipation of the Model 3, delays in production for the vehicle could very well bring the stock down even more.
Featured Image: twitter
