Tesla’s Stock Is Getting Hammered Today. Here’s Why

Jul 05, 2017

Tesla's stock was tumbling Wednesday after a new report from Goldman Sachs lowered its price target for the company.

Tesla shares reached new highs earlier this year, but have since dropped to below $350, with the Goldman Sachs report sending the stock down another 5% on Wednesday. Although some investors may have felt relief when Tesla (tsla) revealed its much anticipated $35,000 Tesla Model 3, Goldman Sachs appeared to be more concerned with the slowdown in sales growth for Tesla's current cars. Goldman analyst David Tamberrino lowered his six-month price target for the company to $180 from $190.

In a note to Goldman clients reported by CNBC, Tamberrino wrote: "We remain sell rated on shares of TSLA where we see potential for downside as the Model 3 launch curve undershoots the company's production targets and as 2H17 margins likely disappoint. This comes as demand for TSLA's established products (Model S and Model X) appear to be plateauing slightly below a 100k annual run rate."

All products and services featured are based solely on editorial selection. FORTUNE may receive compensation for some links to products and services on this website.

Quotes delayed at least 15 minutes. Market data provided by Interactive Data. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Terms & Conditions. Powered and implemented by Interactive Data Managed Solutions