Here’s a Reason Why Tesla (TSLA) Stock is Falling Today

NEW YORK (TheStreet) -- Shares of Tesla Motors (TSLA) are down 0.39% to $252.77 in afternoon trading on Monday after analysts projected that the Palo Alto, CA-based automaker would not meet its 2020 delivery target of 500,000 units by then.

Goldman Sachs analysts estimate deliveries will reach 286,000 by 2020 and 626,000 by 2025, but still believe the electric vehicles could have a "disruptive" upside in the auto industry, Barron's reports.

"[W]hile the Model X ramp itself has been somewhat slower than anticipated, it appears on-track to surpass the launch curve of its Model S counterpart in 2Q16," analysts explained, according to Barron's. "We believe this would give investors some degree of confidence in ultimately delivering the more mass-market Model 3 -but history does point to potential delays."

Analysts raised their price target to $245 from $202 on the "neutral"-rated stock, noting that the Model 3 could "grow to top market share within the segment by 2025," Barron's added.

Separately, Tesla Motors has a "sell" rating and a letter grade of D+ at TheStreet Ratings because of the company's deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and feeble earnings per share growth.

You can view the full analysis from the report here: TSLA

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

 

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