NEW YORK (TheStreet) -- Shares of Tesla (TSLA) - Get Report are dropping after Morgan Stanley cut its estimate for 2015 deliveries of the company's upcoming Model X SUV to 5,000 units from 15,000 previously.
WHAT'S NEW: Morgan Stanley analyst Adam Jonas reduced his estimate for Tesla's 2015 Model X deliveries to 5,000 units from 15,000 units previously. Last month, the automaker said that it did not expect to begin delivering Model X SUVs until the third quarter of 2015. The company had previously said that it would begin delivering the vehicles in the first quarter of next year. Tesla will probably begin delivering the vehicles late in the third quarter and the company is likely to take good care to ensure that the initial vehicles have "uncompromising quality," the analyst stated. Additionally, Jonas believes that the company could have difficulty with the Model X's falcon doors, and speculated that the auto maker could decide to build the vehicle without them. Jonas lowered his 2015 earnings per share estimate for Tesla to $2.45 from $4.39 to reflect the decrease in his Model X forecast. However, the analyst kept a $320 price target and Overweight rating on the shares.
WHAT'S NOTABLE: Tesla CEO Elon Musk stated today on his Twitter account that the company has no plans to eliminate the falcon doors.
PRICE ACTION: In mid-morning trading, Tesla sank 3.9% to $247.76.
Reporting by Larry Ramer.
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