Analysts have said Tesla needs to stop over-promising and under-delivering following the worst quarterly loss in its short history.
In the third quarter of the year, Tesla reported a net loss of $619.4 million while also further delaying volume production of the entry-level Model 3. Consequently, shares in the electric automaker have fallen by more than 6 per cent.
According to Reuters, the likes of Goldman Sachs and JP Morgan cut their price targets by $5-$10 following the release of Tesla’s most recent financial reports.
In a note issued to investors, Cowen and Co analysts said the carmaker needs to slow down its aggressive plans.
“Tesla needs to slow down and more narrowly focus its vision and come up for a breath of fresh air. Elon Musk needs to stop over promising and under delivering,” the analysts said.
Despite the company’s history of burning through money, most analysts still believe consumers should consider investing in Tesla. In fact, Tesla shares are up roughly 50 per cent this year, despite falling some 23 per cent since mid-September.
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