Tesla shares declined 1.62% Friday after analysts at Evercore downgraded the company to "in-line" from "outperform" due to caution around the production of the company's budget Model 3 vehicle.
Analyst George Galliers said that while he still remains positive on the company, production of the Model 3 has been more cumbersome than the company anticipated.
As a result, Galliers cut his Model 3 delivery forecasts for the next three years while also lowering his price target on the company to $312 from $330.
Additionally, Reuters reported that Tesla has cut December orders from one of its Model 3 parts suppliers in Taiwan to 3,000 per week from 5,000 per week. The supplier says that the 40% reduction is due to a production bottleneck for the vehicle.
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