Shares of Tesla (TSLA) - Get Report pared gains on Monday after analysts at Canaccord Genuity lowered their price target on the electric-vehicle maker on delays in the company's new battery cell format.
Canaccord analyst Jed Dorsheimer affirmed a buy rating while lowering his price target to $812 a share from $974.
Tesla shares at last check were 0.4% higher at $614.98. They've traded on Monday up as much as 2.5% at $625.49. The new price target indicates 33% potential upside from Friday's closing price.
The investment firm is concerned about the delay in the Palo Alto, Calif., company's new batteries, specifically the larger 4680 cell design, which has been said to have better charge time, longer per-charge range and lower cost.
Tesla last week launched the Model S Plaid, a high-performance version of its Model S sedan. The move was an effort to update the vehicle which hasn't changed much in 10 years.
The company had previously teased a Plaid Plus model that was to feature the new battery.
Plaid Plus "was reportedly going to be the first to feature the new 4680 cell design," Dorsheimer said.
But the cancellation "signals to us the new cell format isn't ready for production just yet, and cell production capacity constraints for energy storage products like Powerwall remain."
But the company then canceled the Plaid Plus launch, saying that the new model of the Plaid made the Plus unnecessary.
The Plaid had a starting price of $120,000 with a top speed of 200 miles an hour.
Last week the vehicle's base price rose to $130,000 ahead of the first deliveries, which are expected this week following a months-long delay.