- Tesla has been struggling to ramp up production of its Model 3 vehicles.
- Cowen joins the list of firms slashing their Model 3 delivery estimates for the fourth quarter of 2017.
- Watch Tesla’s stock price move in real time here.
Shares of Tesla are up 2.33% to $317.96 on the first day of trading in 2018. The company is expected to release is production and delivery numbers for the fourth quarter of 2017 this week and some Wall Street firms aren’t too optimistic.
Jeffrey Osborne, an analyst at Cowen, slashed his delivery target for Model 3s in the fourth quarter from 9,100 to just 2,250 on Tuesday, a 75% cut.
“While [Model] S/X metrics are likely to be strong, we are taking a more conservative stance on Model 3 deliveries,” Osborne said. “While the exact delivery number isn’t that relevant to the long-term investor’s view of Tesla shares, we believe more telling will be the run rate production levels.”
Osborne is bearish on the company and isn’t the only one. Analysts from KeyBanc cut their fourth-quarter Model 3 delivery targets by about 70% toward the end of 2017, according to CNBC.
Tesla is struggling to break free of production issues plaguing its newest car. The Model 3 has been going through “production hell” as it tries to ramp up production to meet its 450,000-strong list of preorders. The company just recently seemed to overcome a battery manufacturing issue that forced some parts of the batteries to be assembled by hand.
Tesla hopes to produce about 5,000 Model 3s a week by the end of the first quarter. Its original plan was to hit that target by the end of the fourth quarter. The company only recently started delivering the cars to non-employees.
Tesla was up 48% over the last year.