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.”