Tesla's general manager, Elon Musk, expresses himself in his company's factory in Fremont, California.
Noah Berger | Reuters
Wedbush lowered its price target on Tesla shares from $ 230 to $ 275 on Monday, citing "major concerns" about Elon Musk electric vehicle maker's growth plan, as well as US demand for key model 3 .
"In the face of Tesla's red code situation, Musk & Co. is expanding its business to insurance, robotics and other science fiction projects / initiatives, while the company should focus more on laser strengthening core demand for Model 3 and simplifying its business model In our opinion, Wedbush analysts Daniel Ives, in a note to investors, explain the structure of expenses.
Ives said Tesla 's ability to reach its end – of – year production forecast would be "a herculean task". The company plans to produce between 360,000 and 400,000 vehicles by the end of the year. Ives estimates a "best-case scenario" of 360,000 to 370,000 vehicles, although 340,000 to 355,000 is the "most likely way", given the tea leaves currently available in the field, around demand. "
Tesla is facing a quagmire as the company is building its next flagship plant in Shanghai with Giga 3, in the early stages of tooling / designing its next Y model for production planned for 2020 , and the growing production of its base and US model 3, while facing a growing lack of liquidity and a problem of high spending structure, "Ives added.
Tesla shares fell 4% in pre-market transactions from Friday's close of $ 211.03 per share. Wedbush has a neutral rating on the stock.