NEW YORK (TheStreet) -- Shares of Tesla Motors (TSLA) are slumping, down 2.43% to $193 in pre-market trading Wednesday, after the electric car maker had its price target lowered by analysts at Morgan Stanley to $290 from $320 this morning.
Analysts at the firm maintained its "overweight" rating, but cut its volume estimates on Tesla Model 3 to reflect lower long-term oil prices and progress in internal combustion technology.
Morgan Stanley cut its forecast for 2018 to 40,000 units, and total deliveries by 2020 to 297,000 units, compared to Tesla's target of 500,000 units.
The firm also lowered its estimate for 2028 units to 400,000 units from 776,000 units.
However, Morgan Stanley raised its ATP estimate to a range of $55,000 to $60,000 from its previous $40,000 to reflect a lower mass market, but more affluent buyer.
Separately, TheStreet Ratings team rates TESLA MOTORS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate TESLA MOTORS INC (TSLA) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow and generally high debt management risk."